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Tesla (TSLA+1.13%) stock took another dive on Thursday as analysts chopped price targets for the electric-vehicle maker, citing the Trump administration’s impending 25% tariffs on auto parts and weakening demand in Europe and China.
The auto-part levies are still slated to kick in on May 3, and 25% tariffs on aluminum and steel remain in effect, even after President Donald Trump hit pause on tariff hikes for most countries on Wednesday, triggering a historic-yet-fleeting rally.
Tesla plunged 6.66% as of 2:50 p.m. ET on Thursday, sliding along with other leading tech stocks. Since January 1, investors have shucked about 33% off the automaker’s stock price.
In addition to concerns over tariffs, several other factors are influencing the stock, including the blowback chief executive Elon Musk faces due to his role in the Trump administration and DOGE’s mass firings. In the first quarter of 2025, overall Tesla 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, per third-party data, as Musk’s role in the early days of the second Trump administration became clear. Despite Musk’s close ties with Trump, the billionaire has criticized tariffs on Europe, where Tesla faces increasing competition from Chinese EV firms — particularly BYD.
In China, Tesla sales fell 11.5% in March from the same month last year, yet sales did rise month-over-month in China with the debut of Tesla’s revamped Model Y.
Meanwhile, Tesla is trying its luck in Saudi Arabia, where EVs presently make up just 1% of auto sales. BYD (BYDDF+2.93%) already offers its wares in the country — which remains the world’s biggest exporter of crude oil.