Tesla Needs to Pull the Plug on Its Deceptive Made in USA Claims

In a recent letter to the federal agency responsible for developing and implementing U.S. international trade policy, Tesla acknowledged what many car companies marketing Made in USA vehicles (a group it belongs to) have seemed reluctant to admit.

The electric vehicle maker, which touts a large car manufacturing footprint in the U.S., noted in its March 11 letter to the Office of the United States Trade Representative that “even with aggressive localization of the supply chain, certain parts and components are difficult or impossible to source within the United States.”

The car company also said the quiet part out loud earlier this month when it posted on X, which is owned by its CEO, Elon Musk, that it’s the “most vertically integrated auto manufacturer in America with the highest percentage of US content.”

That may be true – and something to celebrate – but that’s not how the FTC defines Made in USA, as TINA.org once again reminded Tesla in a letter Monday that cited a number of deceptive Made in USA claims made by the company on X in the last two months.

In November 2022, TINA.org notified Tesla of its findings that the company was deceptively marketing certain vehicles as Built and Made in USA when the vehicles are assembled in the U.S. using imported parts.

On Monday, TINA.org wrote to the automaker again:

As Tesla is aware, the Federal Trade Commission requires that products marketed as made in America be “all or virtually all” made domestically and contain “no – or negligible – foreign content.” Tesla vehicles, however, are assembled in the U.S. with as much as 25% of the vehicles’ content coming from Mexico and other countries.

TINA.org noted in its letter several recent “exclusion requests” filed by Tesla with the U.S. Trade Representative for Chinese-made equipment that the company uses to make battery modules, drive axles and inverters for its electric vehicles.

Tesla did not respond to a TINA.org request for comment. As of early Tuesday, the X posts at issue were still active.

Tesla is just the latest car company whose Made in USA claims TINA.org has investigated following the White House’s announcement that it would be imposing a 25% tariff on imported vehicles and certain car parts. (See how quickly the parent company of Jeep, Ram and Dodge took down their deceptive Made in USA YouTube ads after receiving a letter from TINA.org.)

The bottom line: A truly Made in USA car – meaning one that meets the FTC’s “all or virtually all” standard – doesn’t exist. While automakers have every right to boast about their assembly plants in the U.S. that create American jobs and strengthen the U.S. economy, they cannot illegally embellish the amount of manufacturing that takes place domestically.

Find more of our coverage on Made in USA.