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Tesla Warns Trump Administration of Tariff Risks as Stock Tumbles

Tesla cautions that U.S. trade policies could trigger retaliatory tariffs, affecting exports and supply chains, while its stock faces steep declines due to falling sales and investor concerns.

Tesla is worried about international retaliation to President Donald Trump's proposed tariffs.
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President Donald Trump and Tesla CEO Elon Musk speak to the press as they sit in a Tesla vehicle outside the White House on March 11, 2025, in Washington, D.C. (Photo by MANDEL NGAN/AFP via Getty Images)

Overview

  • Tesla sent an unsigned letter to the U.S. Trade Representative warning that aggressive tariffs could lead to retaliatory measures, harming U.S. exporters and supply chains reliant on imports.
  • Tesla's letter emphasized the difficulty of sourcing certain materials domestically despite its significant investments in U.S. production facilities like its Nevada battery plant.
  • Tesla shares have lost nearly half their value since December 2024, driven by sharp sales declines in Europe, China, and other markets, as well as increased competition from domestic automakers abroad.
  • Analysts highlight delays in new Tesla product launches and a lack of major technological advancements as contributing factors to investor unease and declining stock prices.
  • Elon Musk's dual role as Tesla CEO and head of the Department of Government Efficiency (DOGE) has raised concerns about conflicts of interest, with critics questioning his focus on Tesla's operations.