Tesla’s American-Made Cars: Why Is the Stock Stuck in Reverse? ($TSLA)
The Real Reason Tesla ($TSLA) Shares Are Sliding—And What It Means for Investors.
Tesla ($TSLA)—the poster child of American innovation—manufactures its cutting-edge electric vehicles (EVs) right here in the U.S. The Model 3 and Model Y? Nearly 75% American-made. The Cybertruck? As American as a bald eagle driving down Route 66. Yet, despite this red, white, and blue pedigree, Tesla’s stock has been on a rough ride, recently plunging over 5% to its lowest level in a month.
If Tesla is churning out EVs made in America for a market obsessed with domestic manufacturing, why is the stock falling? Let’s break it down.
1. The Tariff Bombshell: An Unexpected Curveball
You’d think a company producing most of its cars in the U.S. would be immune to tariff trouble. Think again.
The recent push for increased tariffs on Mexican and Canadian goods by the U.S. government is sending shockwaves through multiple industries—including Tesla ($TSLA). While Elon Musk’s EV empire doesn’t heavily rely on overseas supply chains like some of its competitors, it does ship vehicles to both Canada and Mexico.
And here’s where things get interesting: Potential retaliatory tariffs could shave off 4% to 7% of Tesla’s earnings before interest and taxes from sales in those markets. This wouldn’t necessarily sink the company, but it adds another layer of uncertainty for investors who are already skittish about Tesla’s ability to maintain high margins in an increasingly competitive EV market.
It’s not just Tesla either. If these tariffs escalate, they could impact global supply chains, triggering higher production costs across the entire auto industry. Ford ($F), General Motors ($GM), and even foreign automakers with U.S. manufacturing facilities like Toyota ($TM) could feel the squeeze.
Investors? Not thrilled. Wall Street? Spooked. The result? A stock that’s skidding harder than a Model S on a frozen highway.
2. Market Mayhem: Tesla’s Not Alone in This Slump
Tesla’s decline isn’t happening in a vacuum. The entire stock market has been a battlefield lately, with tech giants taking serious hits.
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