Tesla Faces Challenges Amid Trade Tensions and Market Struggles

Tesla (NASDAQ: TSLA) is facing mounting challenges, with its stock plunging 50% from post-Trump highs. Investor concerns are fueled by Elon Musk’s involvement with Dogecoin (DOGE), slowing EV sales, and dealership protests. Now, the automaker warns that reciprocal tariffs could further impact its global competitiveness.

In a letter to U.S. Trade Representative Ambassador Jamieson Greer dated March 11, 2025, Tesla highlighted the risks of retaliatory tariffs against U.S. trade actions. The company noted that past tariffs had already increased production costs and hurt U.S. manufacturers exporting overseas. Tesla urged policymakers to consider the broader implications of trade policies on domestic businesses.

Tesla also pointed to weaknesses in the U.S. supply chain, particularly in EV components and lithium-ion batteries. While efforts have been made to localize production, certain parts remain difficult or impossible to source domestically. The automaker emphasized that trade strategies should account for these limitations to avoid disruptions.

Additionally, Tesla recommended phased implementation of any new trade measures. This would allow U.S. companies time to adjust, secure supply chains, and ensure compliance with evolving regulations.

With demand softening and geopolitical risks rising, Tesla’s concerns underscore the growing challenges in the EV industry. Investors will be watching closely as trade policies evolve and impact the company’s global operations.