Tesla shares plunge 7.3% amid trade tensions and declining sales

Tesla's stock is down 38% for 2025, facing significant challenges from tariffs and increased competition, prompting concerns over its long-term growth potential.

Sources:

Updated 4h ago

Cause And Effect

Trade tensions lead to cancellation of orders and competitive pressure

The Trump administration’s trade war with China backfired for the president’s senior advisor, Elon Musk, when Tesla was forced to pull two cars from its biggest growth market.

Elon Musk

CEO of Tesla

Import duties on Model S and Model X

125%

Key Facts

Tesla halted orders for its Model S and Model X in China due to 125% tariffs imposed by the government.
Electric Vehicle Market faces increased challenges from local competitors and trade tariffs impacting Tesla’s operations.

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Expert Analysis

Analyzing Tesla's future amidst market struggles

CEO Elon Musk is optimistic, suggesting it could eventually be the biggest product of all time, with $10 trillion in sales.

Elon Musk

CEO of Tesla

Projected market revenue potential

$300 billion to $400 billion

Key Facts

Tesla's valuation remains high despite the ongoing struggles, trading at 87 times earnings estimates.
Tesla's future prospects include a potential market revenue of $300 billion to $400 billion by 2035, according to analysts.

Background Context

Tesla stock struggles amid trade tensions and declining deliveries

Tesla's stock drop on Thursday

7.3%

Tesla's year-to-date decline

38%

Number of vehicles delivered in first quarter

336681

Decline in vehicle deliveries compared to last year

13%

Key Facts

Tesla's stock faced a 7.3% drop on Thursday, marking a significant reversal from prior gains.
Challenges from Trade War contributed to Tesla's 38% decline this year, making it the biggest drop among tech's megacap companies.
First Quarter Deliveries of 336,681 vehicles represent a 13% decline from last year amid brand deterioration.

Tesla shares plunge 7.3% amid trade tensions and declining sales

Trade tensions lead to cancellation of orders and competitive pressure

Related Videos

Analyzing Tesla's future amidst market struggles

Tesla stock struggles amid trade tensions and declining deliveries

Other Facts in these Reports

Source Citations