Tesla’s stock got down in early trading on Wednesday after a wild day on Tuesday. The Shares of electric vehicle maker’s dropped by 1.6% in premarket trading, settling at $218.56. After losing 4.9% on Tuesday, the price fluctuated dramatically between $217.80 and $250.44. While Tesla stock movements often reflect market trends, this sharp decline appears to be influenced by President Donald Trump’s trade policies, particularly tariffs, which have been a point of tension for Tesla CEO Elon Musk.
Musk has been openly critical of Trump trade adviser Peter Navarro, who is a strong supporter of tariffs. Navarro recently suggested that Tesla is “just a car assembler” because the company sources parts from around the world. Musk fired back, calling Navarro a “fool” on social media and pointing out that a significant portion of Tesla’s parts come from the US and Canada. Musk emphasized that every car company, not just Tesla, assembles parts, but given his influence within the Trump administration, Navarro’s comments could hurt investors’ sentiments.
While Tesla stock got a positive note from Benchmark analyst Mickey Legg, Legg lowered his price target for Tesla from $475 to $350 per share, after adding the company to his list of “Benchmark’s “Best Ideas” and speculating that a new Tesla model and robotaxi service could boost the company’s future. This low target has dampened some optimism about Tesla’s prospects.
The situation sheds light on how Tesla’s relationship with the Trump administration, especially in relation to tariffs, could impact its stock price. Prashant Bhardwaj Technology & Business daily spoke to a large ohio hedge fund Investors who are keeping a close eye on the fallout, as a public release of masks along with Navaaro could create more uncertainty for the company’s future.
