Canada Just Crippled The U.S.Auto Industry With SHOCKING MOVE & Elon Musk Completely LOSES IT!

Canada’s move comes in the form of new, aggressive restrictions on the export of critical minerals—specifically the rare earth elements, lithium, cobalt, nickel, and graphite that power electric vehicle batteries.

These are the foundational materials behind not only electric cars but also clean energy storage and military-grade technologies.

In short, these minerals are the arteries of America’s future economy—and Canada just tightened the tourniquet.

Through the newly passed Resource Sovereignty and Export Control Act, Canada is now limiting outbound shipments of these materials to the United States, imposing harsh tariffs and licensing controls that make acquisition slower, more expensive, and far less predictable.

For a U.S.auto sector racing toward electrification, this is not just a disruption.It’s an existential threat.

Few are feeling the heat more than Elon Musk.

Tesla, with its Gigafactories in Nevada and Texas, relies heavily on Canadian-sourced minerals to meet production targets for its batteries.

According to insiders, Musk was caught off guard by the severity of Canada’s restrictions and reportedly erupted in frustration during a private emergency call with Tesla executives and supply chain managers.

“This is a betrayal,” one Tesla insider quoted Musk as saying.

“They just set the whole industry on fire.”

Tesla had been ramping up production of its next-generation vehicles and had recently begun a push to localize its supply chain within North America to reduce dependency on overseas markets.

Ironically, it is this regional focus that now leaves Tesla especially vulnerable.

Tesla shares dipped sharply in extended trading, with analysts slashing short-term production forecasts and warning of potential delivery shortfalls by the end of the quarter.

The repercussions extend far beyond Tesla. Ford and General Motors are both sounding alarms.

Sources say production schedules are already being rewritten.

New EV models expected to hit the market in late 2025 may now be delayed into 2026 or later.

Battery suppliers and parts manufacturers in states like Ohio, Kentucky, and Michigan are preparing for partial shutdowns or workforce reductions if access to raw materials continues to tighten.

Industry groups warn that up to 75,000 American jobs tied directly to electric vehicle manufacturing could be impacted within six months.

What was once seen as a seamless North American auto partnership is now on the verge of collapsing into uncertainty.

Canada’s official position is that the move is about “resource sovereignty” and “responsible environmental stewardship.” But experts are painting a very different picture.

“This is clearly retaliation,” said former U.S.trade representative Mark Clayton.

“The Canadians were boxed out of the U.S.EV tax credit system, and now they’re using their leverage in minerals to make Washington feel the consequences.”

The tension traces back to recent provisions in the Inflation Reduction Act, which offered massive tax credits for American-made electric vehicles but imposed tough rules that excluded many Canadian and foreign suppliers.

Ottawa’s move is seen as a sharp rebuke to these policies and a demand for a seat at the table.

For years, the U.S.has positioned itself as a global leader in clean transportation and energy innovation.

Billions in federal subsidies and private investments have flowed into EV infrastructure, battery plants, and green technology startups.

But without access to the essential raw materials needed to make those vehicles, the entire vision grinds to a halt.

Prices are expected to spike for both electric and gas-powered vehicles as the ripple effects hit parts suppliers and production schedules.

Wall Street is already downgrading U.S.automakers.

And consumers who were considering their first EV purchase may now face longer wait times, higher costs, or no availability at all.

“This could set back the electric vehicle timeline in the U.S.by five to seven years,” said Dr. Lena Foster, a global energy policy analyst. “And that’s assuming this doesn’t escalate further.”

All signs point to yes. The White House has reportedly entered urgent trade talks with Canadian counterparts, but no resolution has been reached.

Insiders say American trade officials are exploring retaliatory tariffs on Canadian lumber, agricultural goods, and even energy exports.

Meanwhile, U.S.auto industry lobbyists are urging the administration to invoke emergency provisions under the U.S.-Mexico-Canada Agreement (USMCA), demanding a reversal of Canada’s new mineral policy.

On Capitol Hill, lawmakers on both sides of the aisle are expressing shock—and anger.

“This is economic warfare,” one senator told reporters.

“Canada just lit the match, and now we’re all standing in the blast radius.”