Tesla Stock Plunges 7%: Cybertruck Woes, Tariff Fears, and Delivery Challenges Shake Investor Confidence
Staff Editor Tesla Faces Multiple Challenges as Stock Drops 7%
Tesla’s stock plummeted 7% today as the electric vehicle manufacturer grapples with a series of setbacks. ATF investigators and Seattle Fire Department officials were seen inspecting burned Tesla Cybertrucks in Seattle, adding to the company’s woes.
Analysts point to impending US auto tariffs and growing anti-Musk sentiment as key factors affecting Tesla’s market performance. Despite the company’s domestic production, President Trump’s looming tariff deadline could significantly impact Tesla’s operations.
Wedbush analyst Dan Ives warns that Tesla may face price hikes due to potential tariffs on auto parts. “Even US-made vehicles rely heavily on foreign components, which could adversely affect Tesla’s cost structure,” Ives stated.
The company is also facing mounting protests against CEO Elon Musk and Tesla itself. Over 200 protest events were reported this weekend, with a particularly large gathering of nearly 400 participants in Ann Arbor, Michigan. The demonstrations are linked to growing discontent over Musk’s political involvement and perceived actions.
Adding to Tesla’s troubles, a fire at a Tesla dealership in Rome has raised concerns, with investigations currently underway.
In light of these developments, Stifel has reduced Tesla’s price target from $474 to $455. The financial services company cites delivery forecast adjustments and challenges associated with the rollout of the new Model Y, dubbed “Jupiter,” as reasons for the cut.
Stifel also highlighted Tesla’s declining favorability among Democrats as a potential sales hurdle, along with the increasing protest activities against the company.
As Tesla navigates these multiple challenges, investors and industry observers are closely watching how the company will respond to maintain its market position and address growing concerns.
