Tesla Shares Fall Amid Tariff Concerns and Delivery Data Uncertainty
14 April 2025 · Uncategorized ·
Source: · https://finance.technews.tw/2025/04/11/tesla-stock-price-fell-after-a-sharp-rise/
Following a temporary suspension of tariffs on regions outside China, Tesla's stock price initially surged but subsequently declined the following day. Analysts have since lowered their target prices for Tesla primarily due to concerns about the impact of tariff policies on the automotive industry and expectations that delivery figures may not improve significantly.
On October 10th, foreign media outlets such as Barron’s and Investopedia reported that UBS (瑞銀) and Mizuho Securities (瑞穗) both reduced their price targets for Tesla. UBS lowered its target to $190, predicting an 11% year-on-year decrease in deliveries by 2025; Mizuho cut the figure to $375, still nearly 30% higher than Tesla's latest closing price.
President Trump’s policy of “reciprocal tariffs” initially created market volatility. He had planned significant tariff increases on over 180 countries worldwide before reversing course and announcing a suspension of reciprocal tariffs for regions outside China lasting 90 days, beginning September 25th—a move that led to an immediate rebound in stock markets after their initial decline.
Tesla’s share price surged by 22.69% on October 1st, marking its largest single-day gain since 2013; however, it fell by 7.3%, closing at $252.40 on October 10th and has dropped over 37% year-to-date.
Despite Tesla manufacturing vehicles for domestic sales in the United States—making them less directly affected by tariffs compared to other manufacturers—the company relies heavily on overseas suppliers for many components. The US maintains a high tariff of 25% on non-US-made cars and parts, significantly impacting the auto industry; Mizuho estimates this reliance could reduce Tesla’s revenue in the U.S. by approximately 3.5%.
Analysts generally anticipate that American automakers will face increased costs and reduced profits due to both ongoing tariff policies and a slowing economy.
Tesla has already been struggling with weak sales figures, experiencing an annual decline of over 10% for deliveries at the start of Q4 2025 in Europe and China. Furthermore, Tesla CEO Elon Musk’s public support for President Trump, coupled with his leadership role during budget cuts and layoffs within a Department (DOGE) under the previous administration, has generated controversies that have damaged Tesla's brand image; recently, protests across America and vandalism targeting Tesla vehicles have been reported.
On October 10th, foreign media outlets such as Barron’s and Investopedia reported that UBS (瑞銀) and Mizuho Securities (瑞穗) both reduced their price targets for Tesla. UBS lowered its target to $190, predicting an 11% year-on-year decrease in deliveries by 2025; Mizuho cut the figure to $375, still nearly 30% higher than Tesla's latest closing price.
President Trump’s policy of “reciprocal tariffs” initially created market volatility. He had planned significant tariff increases on over 180 countries worldwide before reversing course and announcing a suspension of reciprocal tariffs for regions outside China lasting 90 days, beginning September 25th—a move that led to an immediate rebound in stock markets after their initial decline.
Tesla’s share price surged by 22.69% on October 1st, marking its largest single-day gain since 2013; however, it fell by 7.3%, closing at $252.40 on October 10th and has dropped over 37% year-to-date.
Despite Tesla manufacturing vehicles for domestic sales in the United States—making them less directly affected by tariffs compared to other manufacturers—the company relies heavily on overseas suppliers for many components. The US maintains a high tariff of 25% on non-US-made cars and parts, significantly impacting the auto industry; Mizuho estimates this reliance could reduce Tesla’s revenue in the U.S. by approximately 3.5%.
Analysts generally anticipate that American automakers will face increased costs and reduced profits due to both ongoing tariff policies and a slowing economy.
Tesla has already been struggling with weak sales figures, experiencing an annual decline of over 10% for deliveries at the start of Q4 2025 in Europe and China. Furthermore, Tesla CEO Elon Musk’s public support for President Trump, coupled with his leadership role during budget cuts and layoffs within a Department (DOGE) under the previous administration, has generated controversies that have damaged Tesla's brand image; recently, protests across America and vandalism targeting Tesla vehicles have been reported.