Elon Musk, co-founder and chief executive officer of Tesla Motors Inc.

Yuriko Nakao | Bloomberg | Getty Images

The U.S. trade representative’s office has reportedly denied electric car maker Tesla’s requests to waive tariffs on the car company’s China-made center screen and car computer on its Model 3.

The office previously denied a waiver request for Tesla’s autopilot “brain” in May. The automaker is seeking exemptions from the 25% tariffs imposed on certain imports from China by the Trump administration.

Tesla’s shares dropped about 1% immediately following the report before rebounding to trade roughly 1.5% higher for the day.

Tesla has stated that it expects to produce and deliver between 90,000 and 100,000 vehicles this quarter. The automaker has been building a factory in China for its Model 3.

Requests for comment to the U.S. trade representative’s office and to Tesla were not immediately returned.

Reuters contributed to this report. 

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