Tesla Slides After USTR Rejects China Tariff Relief Request

In yet another blow for the government-sponsored carmaker and solar-panel-seller, Reuters reports that the US Trade Rep's office has denied Tesla's request for tariff relief on the Model 3' Chinese-made 'brain'.

Reuters reports that Musk had warned that increased tariffs on the car computer it dubbed the “brains” of the Model 3 causes economic harm to Tesla, through the increase of costs and impact to profitability

The U.S. Trade Representative’s Office denied both requests in May 29 letters, saying they both concern “a product strategically important or related to ’Made in China 2025 or other Chinese industrial programs.”

TSLA shares - having erased all of the Musk Show gains - is sliding from earlier gains...

Tesla faces a 25% tariff on its Chinese-made car computer and center screen, according to letters seen by Reuters.