Tesla Stock: 50% Plunge Amid Tariff Battles

Tesla's stock has plummeted to below $200, marking a dramatic 50% decline from its peak earlier this year. The electric vehicle manufacturer faced particularly severe losses in recent trading periods, with drops between 10-18%. This downward spiral intensified following US President Donald Trump's announcement of comprehensive tariff increases, which Tesla CEO Elon Musk described as having "significant" impact on the company. Despite their well-publicized friendship, Musk's personal appeal to Trump to withdraw the tariffs proved unsuccessful, marking their first major public disagreement. The stock closed at $233.29 on Monday, representing a yearly loss exceeding 42%. JPMorgan analysts have maintained their "Underweight" rating, citing "unprecedented reputational damage" reflected in the share price, and lowered their price target to $120.

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The company's struggles are compounded by disappointing delivery numbers, with a 13% year-over-year decline to 336,681 vehicles in the first quarter. Tesla faces particular difficulties in China, where sales dropped 20% as local competitors gain ground with more affordable models. In response to these challenges, Tesla has implemented strategic price adjustments across its product lineup, recently introducing a less expensive "Long Range All-Wheel Drive" variant of its redesigned "Juniper" Model Y in North America, following a similar move in the German market in February. However, analysts note that with a price-to-earnings ratio of 85, the stock remains fundamentally overvalued, suggesting potential for further declines.