Key Points:
- Tesla shares fell 5.48%, closing at $268.48 after touching $286.64.
- Trump’s 25% auto tariff triggers global auto stock selloff and raises risks for U.S. automakers.
Tesla Inc. (TSLA) closed 5.48% lower at $268.48 on Thursday, as traders reacted to President Donald Trump’s sweeping 25% tariff on all imported cars and light trucks, set to begin April 3. Despite Trump’s assurance that the move would be “net neutral” for Tesla, the stock sold off sharply from an intraday high of $284.68, marking one of the steepest single-day declines for the EV maker this quarter.
The drop came amid widespread losses in global auto stocks, as the tariffs sparked immediate concern over higher costs, reduced vehicle demand, and retaliation from key U.S. allies. Tesla, while less reliant on imported finished vehicles than legacy automakers, remains heavily exposed to foreign parts, global battery supply chains, and overseas markets for growth—particularly Europe and Asia.
Policy Shock Overshadows Recent Rally
Tesla (TSLA) surged from around $223 on March 20 to a high of $286.64 by March 26, marking an impressive short-term rally. However, the chart now shows a shift in momentum, as the stock has pulled back to $268.48. Price has slipped below the short-term moving averages, with the 10-MA now acting as resistance.
Picture: TSLA retreats after peaking at $286.64; MACD bearish, eyes on support near $260, as seen on the VT Markets app
The MACD has also confirmed a bearish crossover, with histogram bars deepening into negative territory—suggesting that selling pressure is building. While the overall uptrend remains intact from a broader view, short-term weakness could persist unless TSLA reclaims the $275–$280 zone soon.
While Trump claimed Tesla would benefit from reduced foreign competition, the real impact of the tariffs could be more complex. Tesla relies on internationally sourced components, including lithium, cobalt, and semiconductors, many of which may still be affected by retaliatory measures.
The company exports Model 3s and Ys to markets like Germany, Japan, and South Korea—countries expected to respond with reciprocal tariffs. Rising consumer prices may dampen EV demand in North America, just as Tesla prepares for Cybertruck ramp-up and continued factory expansion.
The Center for Automotive Research warned that new car buyers could face thousands of dollars in additional costs, hurting demand. Trade groups like Autos Drive America echoed concerns that the tariffs will narrow consumer choice, inflate costs, and undermine manufacturing stability.
Tesla Faces Choppy Terrain Ahead
Tesla’s 5.5% selloff reflects more than just a knee-jerk market reaction. Traders are now pricing in the risk of higher costs, political uncertainty, and potential slowdowns in EV demand due to global trade instability. While the stock still holds above key medium-term levels, momentum has clearly weakened.
If Trump follows through on reciprocal global tariffs on April 2, or if foreign governments target U.S. electric vehicles in retaliation, Tesla’s outlook could darken further. Traders now watch the PCE inflation report and upcoming company delivery data for signs of whether the storm can pass—or if TSLA must brace for deeper downside.
