Tesla (TSLA) shares tumbled 10.4% on Friday, finishing a turbulent week at $239.43 as trade tensions between the US and China reached new heights. This decline adds to an already challenging year for the electric vehicle maker, with its stock now down 40% year-to-date. The company is grappling with a perfect storm of escalating trade conflicts, political controversies surrounding CEO Elon Musk, disappointing sales figures, and increasing competition.
Trade War Pressures Mount
President Donald Trump’s announcement of 34% “reciprocal” tariffs on Chinese imports—higher than many analysts had expected—triggered immediate retaliation from China, with matching 34% tariffs on U.S. goods. This tit-for-tat escalation has significant implications for Tesla, which derives about 22% of its total revenue from China and operates its most productive manufacturing plant there.
While Tesla sources most parts locally in China,…
