Tesla has decided to restart the shipment of key components from China to its U.S.-based production plants by the end of May. This decision follows a significant breakthrough in trade discussions between the United States and China, which led to the rollback of most tariffs and retaliatory measures. The renewed agreement, finalized during talks in Geneva over the weekend, marks a notable cooling of tensions in the long-standing economic dispute between the world’s two largest economies.
A person with direct knowledge of the matter disclosed that the move will directly impact Tesla’s production of its long-awaited Cybercab and Semi truck models. Tesla had previously suspended these shipments after former President Donald Trump sharply increased tariffs on Chinese imports to 145%, jeopardizing its manufacturing schedule.
U.S.-China Truce Sparks Immediate Corporate Action
The agreement to scale back tariffs, announced officially on Monday, is already reshaping strategic decisions among global companies. Tesla appears among the first to capitalize on the thaw in trade relations. While the tariff relief offers short-term clarity, the source noted that the situation remains fluid due to the unpredictable nature of the Trump administration’s trade policies. The individual, who spoke anonymously due to the confidential nature of the topic, warned that future policy reversals could once again stall Tesla’s plans.
Tesla has yet to issue a public statement in response to the development, and its spokespersons did not respond to inquiries.
Production Timelines for Cybercab and Semi Set in Motion
According to earlier reports, Tesla aims to begin trial production of both the Cybercab and the Semi truck in October 2025, with full-scale manufacturing expected to start in 2026. The Cybercab, a fully autonomous vehicle with no steering wheel or pedals, will be built at Tesla’s Texas facility. In contrast, the Semi truck will be manufactured in Nevada.
Tesla has already begun seeking state-level regulatory approval to launch a robotaxi service using its fleet of Cybercabs. First unveiled in October 2024, the Cybercab is designed for urban ride-hailing and will reportedly cost under $30,000. The vehicle represents Tesla’s push to dominate the self-driving vehicle space.
Tesla Plans to Accelerate Semi Truck Deliveries
In parallel with the Cybercab rollout, Tesla plans to ramp up production of its Semi trucks, which have faced years of delays since being introduced in 2017. The company aims to begin delivering long-pending orders in 2026, with major clients like PepsiCo among the first in line.
The tariff hike last month had disrupted Tesla’s timeline and posed risks to its investment in manufacturing expansion. During Tesla’s first-quarter earnings call, CEO Elon Musk revealed that he personally lobbied Trump to reconsider the tariff increases. Musk has repeatedly advocated for free trade, warning that high tariffs could hurt American innovation and manufacturing competitiveness.
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Tesla’s Chief Financial Officer, Vaibhav Taneja, echoed Musk’s concerns during the same earnings call. He emphasized that the elevated tariffs had hindered Tesla’s ability to import critical manufacturing equipment from abroad—particularly from China—delaying upgrades to U.S. production lines.
Although the new trade truce offers temporary relief, Tesla executives remain cautious. As political winds shift in Washington, they acknowledge that any resurgence in protectionist policies could derail their plans once again. For now, though, the rollback of tariffs has given Tesla the green light to push ahead with its next-generation vehicle production strategy.
