Tesla (
TSLA
The stock experienced another drop on Thursday after analysts reduced their price targets for the electric-vehicle company, pointing to the upcoming changes under the Trump administration.
25% duties on automobile components
and
weakening demand
in Europe and China.
The auto-parts duties are still set to take effect on May 3, along with 25% tariffs on
aluminum and steel
stay in place, despite President Donald Trump putting a stop to additional tariffs for most nations on Wednesday, leading to an unprecedented but short-lived upsurge.
Tesla dropped 6.66% by 2:50 p.m. ET on Thursday, declining
along with other leading tech stocks
. Since January 1, investors have shucked about 33% off the automaker’s stock price.
Aside from worries about tariffs, various other elements are affecting the stock price. These include the backlash Chief Executive Elon Musk is experiencing because of his
position in the Trump administration
And following DOGE’s widespread layoffs. In the first quarter of 2025, Tesla saw an overall decline in sales.
slipped 13%
as protestors rallied outside showrooms, instances of vandalized cars and charging stations drew media attention, and potential buyers held out for the company’s Model Y update.
In Europe, Tesla’s sales
cratered 44% in January
According to third-party reports, once Musk’s involvement during the initial stages of the second Trump administration was evident. Regardless of Musk’s strong connections with Trump, the wealthy entrepreneur has
criticized
duties in Europe, where Tesla encounters growing rivalry from
Chinese EV firms
— particularly
BYD
.
In China, Tesla sales
fell 11.5% in March
From the same period last year, however, sales increased sequentially in China following the launch of Tesla’s updated Model Y.
In the meantime, Tesla is attempting to gain a foothold in Saudi Arabia, where electric vehicles currently account for only 1% of vehicle sales. BYD
BYDDF
already provides its products in the country — which continues to be the globe’s largest exporter of crude oil.
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