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Trump’s Tariffs Could Help Tesla, by Hurting Its Rivals More

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Trump’s Tariffs Could Help Tesla, by Hurting Its Rivals More

As President Trump puts new tariffs on goods from China and threatens a trade war with allies like Mexico and Canada, one global company is likely to suffer less than most of its competitors: Tesla.

But the electric car maker led by Elon Musk, which accounts for a third of the billionaire’s wealth, is also vulnerable if relations with China worsen. That country is the company’s second-largest market after the United States and it produces more cars there than anywhere else.

Tesla has built largely self-sufficient supply chains in the United States and China, a rarity in a world of interconnected trade. As a result, the tariffs imposed by the Trump administration on Chinese goods, and the continuing threat to put them on Mexican and Canadian products, might help Tesla by hurting its competitors more.

Although there is no evidence that Mr. Musk is shaping trade policies, the tariffs are one of several measures adopted by the Trump administration that may benefit Tesla at the expense of its rivals. On Wednesday, Mr. Trump paused 25 percent tariffs on most autos and parts made in Canada and Mexico, but the reprieve expires in a month, leaving automakers in the United States that depend on foreign supply chains in a state of uncertainty.

The administration is also trying to eliminate financial support for the construction of fast-charging stations for electric vehicles, a move that could handicap companies seeking to compete with Tesla’s extensive network. And it is attempting to cut or eliminate loans and subsidies that competitors like Ford Motor and Rivian are using to finance electric vehicle and battery factories.

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Mr. Musk has said next to nothing about trade or the administration’s crusade to promote fossil fuels and impede sales of electric vehicles, which could also hurt Tesla. And his support of Mr. Trump has inspired protests at Tesla dealerships and weighed on Tesla’s share price. But his position as a de facto member of Mr. Trump’s cabinet gives him influence that far exceeds any other auto executive.

“Conflict of interest is putting it very mildly here,” said John Helveston, an assistant professor at George Washington University who teaches engineering management.

Tesla did not respond to a request for comment. A White House official said that its policies predated Mr. Musk’s support for Mr. Trump.

“President Trump consistently slammed Biden’s job-killing electric vehicle policies on the campaign trail since summer 2023 — more than a year before Elon Musk even endorsed President Trump — and he has consistently pressed companies to have their products be made in America since he first ran for president in 2015,” Kush Desai, a White House spokesman, said in an email.

The trade war and other Trump policies also hold risks for Tesla when the company is already in crisis, with sales plummeting in China and Europe even as the overall market for electric vehicles is surging.

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Mr. Musk’s extensive investments in China leave him vulnerable as trade tensions between the Chinese government and the Trump administration rise.

“He could become a pawn in all of this,” said Lei Xing, an independent auto analyst based in Massachusetts who is focused on China.

Tesla is already struggling in Europe and China because of competition from Chinese electric carmakers and a dearth of new models. Anger over Mr. Musk’s political activities, including promotion of far-right parties, has also hurt demand in Germany, the United States and other markets. Mr. Musk’s personal wealth is tied up in Tesla stock, which has been on a steep decline.

When Tesla began mass-producing electric cars at a factory in Fremont, Calif., in 2012, it designed a supply chain that was less dependent on imports than virtually all of its competitors. Electric vehicles were a new technology then, forcing Tesla to largely develop its own sources of batteries, motors and other components.

Tesla built a battery factory in Nevada in partnership with Panasonic of Japan, and it remains one of just a few car companies to mass-produce batteries in the United States.

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When, in 2014, Mr. Musk began talking about building a factory in China, he received a warm welcome from government officials. Tesla opened a factory in Shanghai six years later under unusually favorable conditions. Beijing changed ownership rules so that the company could set up without a local partner, a first for a foreign automaker in China. The Chinese government also ensured low-interest loans, access to top leaders and even changes that Tesla had sought on emissions regulations.

But Mr. Musk kept supply chains for the Chinese and U.S. factories relatively separate, unlike other auto companies that depend heavily on imported parts.

“He set himself up nicely in the event that trade goes sideways and tariffs go higher,” said Michael Dunne, a longtime China automotive consultant. “And that serves him well today.”

Today, the cars made in Shanghai are sold in Europe, Southeast Asia or in the domestic Chinese market — but not in the United States.

The cars Tesla sells in the United States are made at factories in Fremont and Austin, Texas. Tesla also produces charging equipment for its proprietary charging network — the nation’s largest — in Buffalo, N.Y. Tesla regularly tops an annual ranking by Cars.com, an online shopping site, of how much of a vehicle is American-made.

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“Tesla is in a good position” to withstand tariffs, said Patrick Masterson, who oversees compilation of the data that goes into the Cars.com ranking. “Their domestic production is robust.”

Tesla is still vulnerable to tariffs on goods from China and Mexico because a quarterof the components and materials in the car, measured by value, is imported, according to data compiled by the National Highway Traffic Safety Administration. But electric vehicles made by Tesla’s competitors are much more vulnerable to tariffs.

General Motors’ Chevrolet Equinox sport utility vehicle, for example, is made in Mexico. With a starting price of $34,000, the battery-powered Equinox is a threat to the Tesla Model Y, which starts at $45,000 before government incentives. The Trump administration’s 25 percent tariff will erase most of that advantage, assuming it stands.

The risk to Tesla in China is harder to gauge. So far, Chinese leaders appear to see Mr. Musk’s role in the Trump administration as a plus, viewing him as a potential point of contact. In January, when Han Zheng, China’s vice president flew to Washington to attend Mr. Trump’s inauguration, he met with Mr. Musk.

“U.S.-China policy often has operated through specific personal relationships,” said Ilaria Mazzocco, a senior fellow in Chinese business and economics at the Center for Strategic and International Studies, a Washington think tank. “There is hope in China that he could play a constructive role.”

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But Mr. Musk has also lost some bargaining power in China.

When Chinese leaders greenlighted the Shanghai factory, Tesla was seen as a technology leader that would spur development of the E.V. industry. With sales plummeting in Europe and weakening in China, however, Tesla production in Shanghai fell 50 percent in February from a year earlier. Chinese automakers like BYD and Xiaomi are introducing new models that rival Tesla in features like autonomous driving.

Tesla’s prestige and leverage in China may be diminished as a result.

“Tesla can no longer control China,” said Jia Xinguang, an independent automotive analyst in Australia. “But China, by contrast, can control Tesla.”

Still, China would likely think twice before targeting Tesla and Mr. Musk because doing so could make it more difficult to attract foreign investment, said Wang Yanhang, a fellow at the Chongyang Institute for Financial Studies at Renmin University in Beijing who tracks trade issues. “China will not shoot itself in the foot,” he said. “It is the last option.”

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China has so far steered clear of autos when retaliating against the Trump administration’s tariffs on Chinese goods, instead raising duties on U.S. agricultural products like chicken and wheat.

Tesla has quietly fought at least one potential tariff on Chinese materials that would have a direct impact on its competitiveness.

China is the main source of high-purity graphite, an essential material for batteries. In December, a group of companies that are trying to produce battery-grade graphite in the United States accused China of dumping and asked the U.S. International Trade Commission to impose punitive duties that could be more than 800 percent.

At a hearing on the issue in January, Tesla hired a prominent Washington law firm to argue its case, and four Tesla executives spoke, according to public documents. Tesla is “pushing back because they don’t see an alternative to the Chinese graphite,” said Iola Hughes, head of research at Rho Motion, which tracks the battery industry.

Last month, the trade agency said there was a “reasonable indication” that Chinese exports of graphite were harming U.S. producers. The agency has not issued a final decision. Mr. Trump’s rhetoric on trade has not included any mention of graphite.

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Joy Dong contributed reporting.

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As post-production work moves out of California, workers push for a state incentive

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As post-production work moves out of California, workers push for a state incentive

As film and television post-production work has increasingly left California, workers are pushing for a new standalone tax credit focused on their industry.

That effort got a major boost Wednesday night when a representative for Assemblymember Nick Schultz (D-Burbank) said the lawmaker would take up the bill.

The news was greeted by cheers and applause from an assembled crowd of more than 100 people who attended a town hall meeting at Burbank’s Evergreen Studios.

“As big of a victory as this is, because it means we’re in the game, this is just the beginning,” Marielle Abaunza, president of the California Post Alliance trade group, a newly formed trade group representing post-production workers, said during the meeting.

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The state’s post-production industry — which includes workers in fields like sound and picture editing, music, composition and visual effects — has been hit hard by the overall flight of film and TV work out of California and to other states and countries. Though post-production workers aren’t as visible, they play a crucial role in delivering a polished final product to TV, film and music audiences.

Last year, lawmakers boosted the annual amount allocated to the state’s film and TV tax credit program and expanded the criteria for eligible projects in an attempt to lure production back to California. So far, more than 100 film and TV projects have been awarded tax credits under the revamped program.

But post-production workers say the incentive program doesn’t do enough to retain jobs in California because it only covers their work if 75% of filming or overall budget is spent in the state. The new California Post Alliance is advocating for an incentive that would cover post-production jobs in-state, even if principal photography films elsewhere or the project did not otherwise qualify for the state’s production incentive.

Schultz said he is backing the proposed legislation because of the effect on workers in his district over the last decade.

“We are competing with other states and foreign countries for post production jobs, which is causing unprecedented threats to our workforce and to future generations of entertainment industry workers,” he said in a statement Thursday.

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During the 1 1/2 hour meeting, industry speakers pointed to other states and countries, including many in Europe, with specific post-production incentives that have lured work away from the Golden State. By 2024, post-production employment in California dropped 11.2%, compared with 2010, according to a presentation from Tim Belcher, managing director at post-production company Light Iron.

“We’re all an integrated ecosystem, and losses in one affect losses in the other,” he said during the meeting. “And when post[-production] leaves California, we are all affected.”

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In Palisades visit, Trump officials vow to speed up permits for fire rebuilding

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In Palisades visit, Trump officials vow to speed up permits for fire rebuilding

In a visit to Pacific Palisades on Wednesday, top White House officials vowed to take over and speed up building permitting, a core state and local function, for rebuilding after the Los Angeles wildfires.

Administrators for the Environmental Protection Agency, Lee Zeldin, and Small Business Administration, Kelly Loeffler, also held a discussion with Palisades fire victims and met with Los Angeles Mayor Karen Bass and Los Angeles County Supervisor Kathryn Barger in a closed-door meeting about how to hasten rebuilding and address issues such as insurance payouts and wildfire prevention.

“Our conversations with Mayor Bass and Supervisor Barger about accelerating the rebuilding process in Los Angeles were productive,” Zeldin said. “Administrator Loeffler and I, on behalf of President Trump, asked these local elected officials to join us in this urgent effort, and I am hopeful great progress will be made in the days and weeks ahead.”

The visit followed a Jan. 27 executive order signed by President Trump to allow victims of the Eaton and Palisades fires to go around “unnecessary, duplicative, or obstructive” state and local permitting processes.

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Instead of going through building departments, such as the city of Los Angeles for the Palisades, or the county for Altadena, builders can instead “self-certify” that they have complied with state and local health and safety standards, if they are using federal emergency funds to rebuild, the order says.

The Small Business Administration has already launched a self-certification tool online, available to applicants who have been waiting more than 60 days for a building permit.

Loeffler said the “check and balance” will come from city and county inspections that must happen before a property is certified for occupancy.

Neither official could immediately recall another instance of the federal government preempting state and local permitting processes for disaster recovery, with Zeldin noting that “nothing like [these wildfires] has ever happened before.”

The visit underscored diverging narratives about the rebuilding process in L.A. While Trump described it as a “nightmare of delay, uncertainty, and bureaucratic malaise” in his executive order, state and local officials said construction is underway and permitting is not the issue.

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“Both administrators were engaged — sharing the President’s concerns while also listening to what I am seeing on the ground in Altadena,” Barger said in a statement to The Times. “I emphasized that 53% of impacted residents have taken no action to rebuild, not because of permitting delays, but because they lack the capital to move forward — an issue exacerbated by delayed insurance payouts. Many families have not submitted plans or entered the County’s rebuilding pipeline and are now facing a serious financial crisis.”

She added that the county’s current timeline for completing permit reviews is 31 business days.

Bass, who is facing renewed scrutiny after an analysis of the Palisades fire was watered down, did not immediately respond to a request for comment about Wednesday’s meeting.

Gov. Gavin Newsom said in a post on X following the executive order, that hundreds of homes are under construction, and that permitting timelines are at least twice as fast as before the fires. He said the president continues to withhold a federal aid package that would help families rebuild.

“The Feds need to release funding, not take over local permit approval speed — the main obstacle is COMMUNITIES NOT HAVING THE MONEY TO REBUILD,” the governor said.

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Last month, on the anniversary of the fires, a bipartisan delegation of California legislators also penned a letter to Trump calling for additional federal support.

A December analysis by The Times found that permitting has gained momentum after a slow start, with the pace slower than after some disasters in the state, and faster than others.

As of Wednesday, more than 3,170 rebuilding permits have been issued in the fire areas, according to city and county dashboards.

But Zeldin used the opportunity to take jabs at Newsom, describing his approach to federal funding requests as “flawed.”

“The whole ask has been completely stepped on by the governor’s effort to campaign for president — to try to lob 11 insults a day and somehow fit in an ask for tens of billions of dollars in the middle of it,” he said. “It’s just not a good strategy.”

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He declined to say whether additional funding will come from Congress, or how much.

Some Palisades residents said they would welcome whatever support they can get. Among them was Abby Waldorf, whose parents both lost their homes in the Tahitian Terrace mobile home park during the Palisades fire.

Waldorf said mobile homes don’t qualify for many city and state recovery programs, such as mortgage relief and disaster recovery aid, so they are “most at risk of not coming back.”

“Our community is very supportive of anyone that will help us move back quickly,” she said, “and at this point we haven’t seen that happen at the city, county or state level yet, and so anyone who can come in and do the job is welcome.”

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For Disney’s board, a meticulous CEO handoff — not ‘a rigged game’ — was the imperative

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For Disney’s board, a meticulous CEO handoff — not ‘a rigged game’ — was the imperative

Casual conversation in Hollywood often drifted to a familiar question: “Will Bob extend his contract again?”

Walt Disney Co.’s board had initially set Chief Executive Bob Iger’s target retirement date for 2015. The board instead renewed his contract multiple times, then called him back in 2022 — nearly a year after he had retired — when the last leadership handoff famously unraveled.

Disney’s struggles with succession over the decades have become epic dramas filled with false starts, larger-than-life leaders reticent to go and allegations of hollow searches for a new CEO. Twenty-plus years ago, one candidate for the top job — former Ebay and Hewlett-Packard chief Meg Whitman — withdrew from the running, suggesting the fix was in.

Disney’s board at the time wanted to give Iger, a longtime ABC executive who had toiled years in the shadow of former Chief Executive Michael Eisner, a shot.

With all that history, Disney’s board recognized its imperative of choreographing a meticulous transition. Iger, 74, was ready to go, and the process to find his successor was certain to go under the microscope.

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“We had to be open — we couldn’t be questioned on it,” Disney Chairman James Gorman told The Times in an interview to shed light on what, until this week, had been a closely guarded boardroom process. “We didn’t just want to have this as a rigged game.”

This week, Disney’s board unanimously approved the selection of 54-year-old parks chief Josh D’Amaro to succeed Iger on March 18 when the company holds its annual meeting with shareholders. The switch will mark the end of an era, as Iger has been a towering presence in Hollywood for more than 20 years.

Two years of planning led up to D’Amaro’s selection. When Iger’s last successor, Bob Chapek, was ousted in November 2022, Disney’s board announced that Iger would return to serve as CEO for just two years.

But a series of high-level executive departures had thinned Disney’s executive bench. The board later acknowledged it needed additional time to plan succession and Iger’s contract was extended again, this time to December 2026.

Disney Chairman James Gorman, former chairman of Morgan Stanley, led the succession search that culminated this week.

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(Hollie Adams / Bloomberg via Getty Images)

Gorman — a former chairman and chief executive of Morgan Stanley — joined Disney’s board in the fall of 2024. He became chairman in January 2025 and succession planning began in earnest. Unlike in early 2020, when Iger was in charge of the board that tapped Chapek, this time the board formed a succession committee comprised of current and former CEOs of different firms.

The committee, led by Gorman, included General Motors Chief Executive Mary Barra, former CEO of Lululemon Athletica Calvin McDonald; and the former head of Britain’s Sky broadcasting, Sir Jeremy Darroch.

The search began with a list of about 100 potential candidates, Gorman said, including names provided by search firm Heidrick & Struggles. The group eventually culled the list to 30, he said, then narrowed it even more. They met with a few outsiders.

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“We wanted to see what was out there … but it’s always difficult to go outside for any company,” Gorman said, adding that typically happens during a crisis, such as an abrupt CEO retirement due to illness or some other unforeseen event.

“You don’t take somebody from the industrials world and plop them in a media company,” he said. “That’s just too big a lift.”

Increasing the challenge, the 102-year-old company has a distinct corporate culture — one that still pays homage to founder Walt and instills in its employees (known internally as cast members) the need to serve as guardians of Disney’s treasured characters and brands.

Any outside pick would have been a risky bet.

Four Disney executives were under evaluation. D’Amaro, television and streaming chief Dana Walden, movie chief Alan Bergman and ESPN Chairman Jimmy Pitaro were all viewed as contenders for the job.

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The board spent months sizing up strengths and weaknesses of external and internal candidates. Candidates made presentations to the board, laid out their visions for Disney’s future, received mentoring from Iger and spent hours meeting with Gorman and other succession committee members as well as the full board.

Hopefuls were questioned on their visions for the company. They were quizzed about such topics as teamwork and corporate culture.

“We wanted to know that whomever we picked beat all comers,” Gorman said. “And our people stress-tested unbelievably well. Yes, the [Disney executives] were given a huge advantage because they understand the culture, it’s a very unique culture, but it wasn’t just that.

“They were capable and they were ready,” Gorman said.

The board increasingly became comfortable with D’Amaro — who joined the company 28 years ago in Disneyland’s accounting division. For the past six years, D’Amaro has run Disney’s parks and experiences division, which now is the company’s largest business unit amid the decline of traditional television.

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Dana Walden and Josh D'Amaro.

Walt Disney Co.’s board named Josh D’Amaro, right, as the new chief executive. Dana Walden, left, who is co-chairman of Disney Entertainment, will step into the role as president and chief creative officer.

(Walt Disney Company)

The board also carved out a new role as president and chief creative officer for longtime television executive Walden, 61, who becomes the first woman to serve as Disney’s president.

Gorman said Walden, 61, was impressive.

“She’s a strong leader. She’s decisive. She’s got great creative chops,” Gorman said. “She’s worked well with Alan Bergman as co-chair of entertainment. The idea is to ensure we bring creativity to all parts of the company and in all corners of the world.”

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“A new CEO is massively, positively enabled by having their team, if they’re capable,” Gorman said. “And we are blessed with [our team] in place.”

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