Tesla Stock Price Plummets Over 6% to $253.86

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Tesla Shares Sink 6.74% as Tariff Concerns Resurface

After the opening bell on Thursday, the share price of electric vehicle manufacturer Tesla fell by over 6%. Specifically, Tesla’s stock declined by 6.74%, reaching a value of $253.86. This drop occurred after a remarkable surge in the company’s stock value on the preceding day, as Wednesday had witnessed Tesla shares closing with an impressive gain of 22.69%, marking one of the stock’s best single-day performances in its history.

The dramatic rally on Wednesday was largely attributed to the announcement by President Trump regarding a temporary, 90-day pause on the implementation of certain import tariffs. This news had been broadly welcomed by the market, including investors in Tesla.

However, the optimism surrounding the tariff pause proved to be short-lived for Tesla’s stock. While the broader market had reacted positively to the general tariff delay, the specifics of the announcement revealed a crucial exclusion for the automotive industry. Namely, the existing 25% tariffs on imported cars remain in effect. Given that the United States imports a significant portion of the new cars sold domestically, this ongoing tariff burden continues to pose a challenge to Tesla and the EV industry as a whole.

Moreover, as Tesla heavily relies on its Shanghai manufacturing plant, the fact that China was not included in the Trump administration’s tariff pause also affected investor confidence. Further exacerbating pressure on the stock, the US president also increased tariffs on Chinese imports to over 120%. The ongoing trade conflict between the US and China and the retaliatory tariffs imposed by Beijing on American goods create an unfavorable backdrop for Tesla’s operations.

Adding to Tesla’s woes, Goldman Sachs recently lowered its price target for Tesla’s stock by $15 to $260. According to Goldman Sachs, car companies will struggle to pass on the costs resulting from increased duties to their customers.