Tesla Shares Are Trading Lower Today: What You Need To Know

Author: Vaishali Prayag | August 27, 2024 03:36pm

Tesla Inc. (NASDAQ:TSLA) shares are trading lower Tuesday. The decline follows Canadian Prime Minister Justin Trudeau’s announcement of a 100% tariff on electric vehicles (EVs) imported from China. This tariff impacts Tesla, as vehicle identification codes reveal that Model 3 sedans and Model Y crossovers have been exported from Tesla’s Shanghai factory to Canada.

What To Know: Canada’s newly imposed 100% tariff on Chinese EV imports is part of a broader alignment with similar actions by the United States and the European Union. The tariffs are intended to counteract what Trudeau described as China “not playing by the same rules.”

Recap: Broader Market Impact and Tesla-Specific Developments

1. Trade Tensions and Tariffs: The tariffs are part of escalating trade tensions that are weighing heavily on the global EV market. Tesla, like other automakers, faces increased costs and potential supply chain disruptions as a result of these tariffs.
2. Stalled EV Demand: The EV sector is also struggling with stalling demand and increased competition. The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) has plunged nearly 70% from its peak in November 2021. Tesla, in particular, has been forced to slash prices on its vehicles to stay competitive, further pressuring profit margins.
3. Cybertruck Concerns: Tesla is also dealing with some negative publicity related to its highly anticipated Cybertruck. Tucker Carlson’s recent video review of the Cybertruck getting stuck in mud has prompted Tesla engineer Wes Morrill to consider a “stuck detection” feature to assist drivers in off-road situations. While the loggers who tested the vehicle were impressed with its handling, they viewed it more as a “toy” than a work truck, echoing past criticisms from Ford CEO Jim Farley.

TSLA Price Action: Tesla’s price action were down by 1.62% at $209.75 according to Benzinga Pro.

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Image via Shutterstock.

Posted In: TSLA