This is significant on surface. And it is more significant in what it means to global war on manufacturing or sourcing or offshoring or re-shoring, which are all relevant to what Trump wants.
In short, given what China already has in manufacturing eco-systems and technological eco-systems, it is very hard for high-cost models to compete against Chinese models in the same vertical business sector. NEV is just a classic example. I could have recalled electronics manufacturing service industry in good old days. The longer the timer ticks, the more acute this issue manifests to those high-cost competitors.
In this particular story of NEV, Tesla, like other electronics OEMs or ODMs before its being, has gained tremendous competitive advantages from Shanghai Giga Factory. If there were no Chinese native competitors, Tesla would have been sitting pretty. But facing formidable competitors such as BYD, Tesla global cost model is no longer efficient enough. In other words, it becomes a high-cost competitor.
I will let you guys translate what it actually means 5 years, 10 years down the road ......