Tesla: Company May Be Target Of Retaliatory Tariffs

Tesla has written to the Trump administration expressing its concerns about the potential consequences of its trade policy. In the letter, Tesla explains that it may become a target of retaliatory tariffs. While Tesla supports fair trade, it warns that U.S. exporters will become more vulnerable when other countries respond with their own tariffs. Moreover, Tesla notes that tariffs may increase manufacturers' costs and reduce the competitiveness of American-made cars overseas. The company also asks the government to avoid imposing tariffs on key minerals such as lithium and cobalt, which are hard to find in the U.S. In fact, despite its efforts to build a domestic supply chain, Tesla says that some parts cannot be sourced domestically. Tesla's warning comes as the company faces challenges. Its shares have fallen 40% since the beginning of the year amid concerns about its declining sales and economic and trade policy uncertainty. Wall Street analysts have a "hold" rating on Tesla stock based on 12 buy, 13 hold, and 12 sell ratings assigned over the past three months. The average target price is $331.07 per share.