Tesla Stock Drops as Trump Tariff Threats Take Focus Off Magical Thinking

Donald Trump’s recent tariff threats, including 25% on imported Apple iPhones and 50% on EU goods, have caused market volatility. Tesla, as an electric vehicle (EV) maker, faces additional legislative pressures, such as bills affecting EV tax credits.

On May 23, 2025, Tesla’s stock dropped 1.6%, closing at $335.56, likely due to these tariff threats and related market sell-offs, with the Nasdaq 100 falling 2% and Apple’s stock down 3.5%. This shift moved focus from Tesla’s innovation, like AI and robotaxis, to immediate geopolitical risks.

Analyst and Market Reactions
Despite the drop, some analysts, like Dan Ives from Wedbush, raised Tesla’s price target to $500, citing AI potential. However, portfolio managers advise caution given recent volatility, with the stock still 30% below its December 2024 peak.

Initial results showed multiple news outlets reporting market reactions to Trump’s tariffs, with specific mentions of Tesla. To get detailed information, a specific article from Vocal.media was browsed, matching the user’s statement. Additional cross-checks with MarketWatch, New York Times, Investopedia, and Yahoo Finance were conducted to ensure consistency. The process also involved analyzing stock performance data and analyst reactions to provide a comprehensive view.

Detailed Findings
The search results provided several key pieces of information, summarized below:
Portfolio Manager Advice Charles Harris (O’Neil Global Advisors) urges caution, emphasizes disciplined strategy and position sizing
News Article Analysis
Vocal.media : This article, published two days ago, directly addresses the statement, detailing a 1.6% drop on May 23, 2025, closing at $335.56, due to Trump’s tariff threats. It mentions the shift from “magical thinking” (overly optimistic views on innovation) to geopolitical risks, with additional legislative challenges like EV tax credit elimination and emissions standards revocation.
MarketWatch : Reported two days ago, Tesla’s stock shed 1.3% in premarket after being up 1% before Trump’s 50% EU tariff threat, aligning with the drop date.
New York Times : Two days ago, discussed broader market impact, with Trump’s EU tariff threats causing economic damage, affecting stocks like Tesla.
Investopedia : Two days ago, stocks closed lower due to Trump’s tariff threats, reigniting global trade concerns, impacting Tesla.
Yahoo Finance : Two days ago, reported market falls due to Trump’s 25% Apple tariff threat, with broader impact on tech stocks including Tesla.