Tesla Stock Plunges 36%! Trade War Threats Escalate, Manufacturing Costs May Rise!
TradingKey - Tesla's stock has plummeted over 36% this year, with the company warning in a letter to the USTR that Trump's trade war could make it a target for retaliatory tariffs.
Recently, U.S. automaker Tesla (TSLA) sent a letter to the Office of the U.S. Trade Representative (USTR), stating that President Trump's trade war could expose the company to retaliatory tariffs and significantly increase manufacturing costs in the U.S.
Additionally, Tesla noted that it has been restructuring its global supply chain to localize production as much as possible. However, the company also warned, "Even with aggressive supply chain localization efforts, certain components are difficult or impossible to source domestically in the U.S."
This year, Trump has threatened tariff threats against Mexico, Canada, China, the EU, and other regions. He is now considering imposing high tariffs on cars and auto parts worldwide as early as April.
Tesla Stock Price Chart, Source: TradingView.
On Tuesday, Trump announced the purchase of a Tesla electric vehicle,sparking a rebound in Tesla's stock. However, despite the temporary boost, Tesla’s stock remains down over 36% this year, completely erasing the gains from Trump’s election victory in November. Guggenheim analyst Ronald Jewsikow predicts that Tesla's stock could fall to $170, representing nearly 30% from current levels.
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