Oslo Taxi’s Tesla model Y (L) and the NIO ET5 electric vehicle from Nio Inc, a Chinese multinational electric car manufacturer, drive through the Norwegian capital Oslo, on September 27, 2024.
Jonathan Nackstrand | Afp | Getty Images
Tesla shares slid about 5% on Monday after President Donald Trump announced plans for extensive tariffs on goods from Canada, Mexico and China.
The stock was also hit by declining registrations for Tesla vehicles in France, Sweden and Norway. Tesla fell more than its megacap peers, with Apple’s stock suffering the next biggest drop at more than 3%.
President Donald Trump over the weekend slapped 10% tariffs on goods imported from China, where Tesla produces about half its automobiles. While the tariffs are sure to hit all automakers’ supply chains, Tesla operates factories in the U.S., Berlin and Shanghai, enabling it to sidestep some of the challenges faced by other electric vehicle makers.
During Tesla’s earnings call last week, Chief Financial Officer Vaibhav Taneja said the company’s profitability could take a hit if the new administration implements tariffs.
“Over the years we’ve tried to localize our supply chain in every market, but we are still reliant on parts from across the world for all our businesses,” Taneja said. He said the “imposition of tariffs” would “have an impact on our business and profitability.”
As for falling registrations In Europe, the drop was steepest in France, one of the continent’s largest EV markets. Tesla registrations there fell 63% in January from the same month a year earlier, according to data tracked by industry association PFA (Plateforme Automobile). That was a much steeper drop than the decline in electric cars and in overall automotive sales in France.
In Sweden and Norway, Tesla sales for January fell 44% and 38%, respectively, Reuters reported.
In addition to the tariffs and news about declining registrations, Tesla over the weekend also cut lease prices for its base Model 3 sedan and unpainted steel Cybertruck vehicles, according to listings for customers in the U.S. viewed by CNBC.
An independent researcher who publishes his Tesla forecasts under the handle “Troy Teslike” on Patreon wrote, in a post on X, that he only expects Tesla to sell about 21,000 units of its Cybertruck in 2025.
“The order backlog is gone,” he wrote. “Tesla ended 2024 with 10,600 unsold Cybertrucks because of too much production and low demand. The backlog dropped to zero on November 24, 2024, when Tesla’s order page in the US showed that customers could order and take delivery of a Cybertruck on the same day.”
Tesla CEO Elon Musk was a major backer of Trump’s presidential effort, contributing $290 million to Republican candidates and causes in 2024, most of that directed at returning Trump to the White House. Musk also recently endorsed Germany’s far-right Alternative for Germany (AfD) party.
As CNBC previously reported, Musk’s incendiary rhetoric and political activism have contributed to a decline in Tesla’s brand value and reputation. Tesla’s brand value fell 26% in 2024, according to consulting firm Brand Finance.
WATCH: Tesla stock is disconnected from fundamentals
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