Tesla's Market Reaction to New Tariffs

Following United States President Donald Trump's announcement of sweeping global tariffs, including specific levies on cars, Tesla shares tumbled 6% in premarket trading Thursday. This downturn comes despite CEO Elon Musk's previous warnings about the potential "significant" impact on the company.

Previous Rally and Current Performance

The decline marks a sharp reversal from the previous day's 5% rally, which was fueled by reports of Musk stepping down from his advisory role in the Trump administration. Additionally, Tesla disclosed that its first-quarter 2025 deliveries fell short of analyst expectations, further complicating the stock's performance.

As of 8:02 am ET, Tesla was trading 6.34% lower at $264.78, reflecting the immediate market reaction to the tariff announcements and delivery figures.