After a brief surge in the trading day on Wednesday, the shares of the world's largest EV maker, Tesla, slumped yet again on Thursday, March 13. This comes at a time when the tariff war started by US President Donald Trump is in full swing, and the retaliations and counter-retaliations in these taxes have taken the global market hostage.
The Tariff Back And Forth
In the most recent chapter of the tale of tariffs, after the European Union said it will also impose taxes on US goods, Trump countered it with a threat of 200 per cent tariff European alcohol entering the United States.
Meanwhile, the strikes and counterstrikes have worried many at Wall Street, and no one is astoundingly more concerned than the company shepherded by Trump's closest ally, Elon Musk.
Apart from low sales numbers in the first weeks of 2025, it is also being reported that the company's production of its cars has also diminished, after it went full-throttle in its attempt to maximise sales of Tesla cars in the later half of 2024. |
Tesla Worried About Tariffs
According to a report by British publication, Financial Times, the US EV giant has consulted and communicated their concerns with the Trump Administration.
The company has expressed its apprehension of the effects that these tariffs and subsequent retaliatory tariffs could have on the company, which is already in a tight spot, thanks to its low sales numbers and January.
Most importantly, many of its key markets in Europe and the US itself have been majorly hit.
Apart from low sales numbers in the first weeks of 2025, it is also being reported that the company's production of its cars has also diminished, after it went full-throttle in its attempt to maximise sales of Tesla cars in the later half of 2024.
As per the FT report, Tesla representatives said, " Tesla supports fair trade but warned that US exporters were 'exposed to disproportionate impacts when other countries respond to US trade actions".
Tesla Shares In Red
The company shares tanked on Thursday, yet again. Currently, the company seems to be flowing in the opposite direction, as the shares of the makers of Model Y crumbled by 2.99 per cent or USD 7.41.
This took the overall value of Tesla shares to USD 240.68 per piece, behind its mid-December high of USD 488.54 per share.
