Elon Musk has said U.S. President Donald Trump's new auto tariffs will have a “significant” impact on his EV company Tesla (NASDAQ:TSLA).

In a post on X, Musk said “Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.”

Trump said on Wednesday the 25% tariffs would apply on all cars not made in the US, and that Musk, who has been close to the president, was not consulted on the matter “because he may have a conflict.”

Musk has been a senior advisor and important source of funding to Trump. He has also helmed the Department of Government Efficiency to cut federal government spending. Trump promoted Tesla (NASDAQ:TSLA) in an event at the White House earlier this month.

Trump has said the new auto tariffs may be “net neutral or they may be good” for Tesla specifically, pointing to the company’s assembly plants in Texas and California.

Shares of Tesla (TSLA) fell 1.3% in premarket trade on Thursday. Domestic automakers such as General Motors (GM), Ford (F) and Stellantis (STLA) were down -6.2%, -4.7% and -4.1%, respectively.

Non-U.S. players such as Honda Motor (HMC) fell -1.7% and Toyota (TM) -2%.

Tokyo-listed shares of Nissan, Mazda and Mitsubishi were down 1.68%, 5.9% and 3.2%, respectively, while Hyundai Motor dipped 4.3% in Korea.

Meanwhile, Chinese EV players Nio (NIO) and Xpeng (XPEV) erased 4.8% and 2.3%, respectively, in Hong Kong.