Shares of Tesla (NASDAQ:TSLA) experienced a notable decline of 6.4% in pre-market trading, as market jitters over impending “reciprocal tariffs” led to a broader pullback in major stock indices. According to Yahoo Finance, these tariffs, set to be announced on April 2, 2025, aim to target countries with which the United States has a trade deficit, potentially escalating trade tensions and contributing to fears of stagflation.

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Stifel analyst Stephen Gengaro has adjusted Tesla’s stock price target downward, pointing to challenges in the rollout of the new Model Y. Gengaro highlighted that the Model Y’s sales might face obstacles due to a slowdown in global electric vehicle demand and increasing competition. This sentiment is echoed by data from the IndexBox platform, which indicates a competitive landscape in the EV market, with numerous players vying for market share.

Despite the current volatility, Tesla’s shares have demonstrated significant movement over the past year, with 125 instances of price changes exceeding 2.5%. As of today, Tesla’s stock is down 32.7% since the start of the year, trading at $255.01 per share, which is 46.9% below its 52-week high of $479.86 recorded in December 2024. Investors who ventured $1,000 into Tesla five years ago would now see their investment valued at $7,302, reflecting the company’s potential for long-term growth despite short-term fluctuations.

Source: IndexBox Market Intelligence Platform