President Donald Trump revealed plans to impose significant tariffs on imports from China, Canada, and Mexico, which caused Tesla’s stock to drop around 5% on Monday, closing at $383.68.
Decreases in Tesla car registrations in France, Sweden, and Norway also had an impact on the stock.
Tesla experienced a greater decline than its megacap competitors, while Apple’s stock saw the next-largest decline, falling more than 3%.
Over the weekend, President Donald Trump imposed 10% tariffs on goods coming from China, where Tesla makes almost half of its cars.
Although the supply chains of all automakers will undoubtedly be impacted by the tariffs, Tesla is able to avoid some of the difficulties that other manufacturers of electric vehicles face because it has factories in the United States, Berlin, and Shanghai.
Chief Financial Officer Vaibhav Taneja stated on last week’s results call that if the new administration imposes tariffs, Tesla’s profitability may suffer.
Source (CNBC)
