Why Tesla Stock Is Sinking Today

3 months ago 30

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Johnny Rice, The Motley Fool

Wed, Mar 26, 2025, 9:27 AM 3 min read

Shares of Tesla (NASDAQ: TSLA) are falling connected Wednesday. The electrical conveyance maker's banal mislaid 3.8% arsenic of 3:30 p.m. ET and was down arsenic overmuch arsenic 5.4% earlier successful the day. The steep diminution comes arsenic the S&P 500 and Nasdaq Composite indexes mislaid 0.6% and 1.3%, respectively.

The EV person is facing caller headwinds arsenic planetary commercialized tensions escalate into nonstop enactment against the company.

Canada announced it has frozen $43 cardinal successful suspicious EV rebates for Tesla vehicles and volition analyse each assertion to verify their legitimacy. The announcement comes aft the EV shaper submitted thousands of claims successful the days earlier the rebate programme ended, the equivalent of selling 2 cars each minute, 24 hours a day.

Canadian Transport Minister Chrystia Freeland has directed her ministry to explicitly exclude Tesla vehicles from the country's zero-emission rebate programme for arsenic agelong arsenic "illegitimate and amerciable U.S. tariffs are imposed against Canada."

The targeted determination is 1 of the archetypal and clearest nonstop regulatory actions against Tesla resulting from President Trump's caller tariff policies and Tesla CEO Elon Musk's salient presumption successful his administration. This is apt to importantly impact the company's quality to merchantability vehicles successful Canada.

This is 1 much successful a bid of caller woes for the institution that stem successful ample portion from Musk's actions. The institution has seen its income plummet crossed cardinal markets from China to the E.U. arsenic Musk inserts himself into the authorities of countries astir the world. This comes astatine an already susceptible clip for Tesla arsenic it faces stiffening contention from legacy manufacturers and Chinese EV rivals. Even aft the important driblet successful terms implicit the past fewer months, I deliberation Tesla remains overpriced, and I would debar the stock.

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