Hello and welcome to the Saturday June 1st 2019 edition of Tesla Daily on

official Tesla Podcast. My name is Rob

Maower. Today we are talking about the release of the model three to

right-hand drive markets and a couple other notes. Tesla stock on Friday did

finish down 1.63% to $185.16. This compared to the Nasdak down 1.51%.

The overall markets took a hit on Friday on the news of Trump threatening to impose tariffs on Mexico.

That tariff could potentially begin as early as June 10th and would begin at 5% on all

goods from Mexico and the U.S. and then could escalate to a higher percentage from there.

Those tariffs would have an impact on Tesla we know from the Monroney sticker on the

Tesla Model 3 that 25% of its parts content comes from Mexico.

The model X is similar at 25%, the model S, a little bit lower at 15%.

So in total we're probably looking at 23 to 24% of Tesla's parts coming from Mexico.

I'm also not sure if that is the number of parts

in terms of the actual unit count of parts

or if it's actually a cost-based percentage.

So for example, 25% of Tesla's parts might come from Mexico, but maybe those parts only cost 15% of the total parts cost. I'm not exactly sure on that. But assuming the cost and unit percentages are similar, an additional 5% cost on those parts from a 5% tariff on

Mexico goods, all in that would end up being about a 1% increase on Tesla's total parts costs.

In terms of the increase to cost of goods sold, it would end

up being then a smaller percentage because of the non-parts costs of goods sold.

So this potential 5% tariff would have some impact on Tesla, though, still relatively minor at this point.

The big concern would be if this did continue to escalate, that could potentially have a significant

impact on Tesla's cost of goods sold, or Tesla could find other sources for those parts.

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