CNBC’s Phil LeBeau joins 'Closing Bell' to discuss Tesla next model with a lower price point and the upcoming auto tariffs.

Sources say the new EV will be a smaller Model Y, with mass production starting in 2026. Local rivals like BYD are eroding Tesla’s market share, prompting a new affordable model. The new electric car will reportedly be produced in China,

In a letter addressed to the U.S. Trade Representative, Elon Musk's Tesla warned that retaliatory tariffs could affect production and harm U.S. companies.

Tesla says it is important to ensure that the Trump administration's efforts to address trade issues "do not inadvertently harm U.S. companies."

Tesla told the Trump administration that its ongoing tariff war could make it more expensive for the electric car company to build vehicles in the U.S. “Trade actions should not (and need not) conflict with objectives to further increase and support domestic manufacturing,