US President Donald Trump’s tariffs have hit Tesla stock hard, with shares declining 5% – the largest single-day loss among American companies valued at $200 billion or more. The decline has taken $11.8 billion off Elon Musk’s net worth, according to Forbes.
Tesla is highly reliant on imports from China, where it generates over 21% of its global sales revenue. This makes it vulnerable to tariffs, which have been a major concern for the company. Despite Musk’s past criticism of tariffs, he has remained quiet on the issue until now.
The decline in Tesla stock is part of a broader volatile trading session that saw the S&P 500 drop by as much as 1.9% before recovering to a daily loss of 0.8%. Other companies heavily impacted by tariff concerns include car makers reliant on North American supply chains and those doing significant business in China, such as Apple.
The tariffs have sparked fears among investors about the impact on Tesla’s business and profitability, particularly since Musk has warned that they will “have an impact” on the company. However, Tesla’s stock has still managed to gain 53% since Trump won the election in November.
Source: https://www.forbes.com/sites/dereksaul/2025/02/03/elon-musk-is-the-biggest-loser-from-trumps-tariffs-so-far