Tesla Inc. shares declined 2.4% in morning trading on Monday, underperforming the broader market as the S&P 500 and NASDAQ also posted losses.
The decline in Tesla stock followed a 50% tariff announced by President Trump on all Canadian imports, including automobiles, automotive components and steel, effective January 1, 2027. The move contributed to weakness across the U.S. auto sector, with Ford Motor Co. down 3.37%, General Motors Co. down 1.08% and Stellantis NV falling 4.76%.
Chinese automotive regulators initiated a recall of approximately 2.98 million vehicles, the largest in the country’s history, citing concerns over flush-mounted electronic door handles that may hinder emergency egress. Affected models include Tesla’s Model 3, Model Y, Model S and Model X. The recall adds pressure on the company’s operations in the region.
Speculation around a potential Tesla-SpaceX merger resurfaced after an SEC filing revealed Elon Musk holds roughly 48.4% of SpaceX’s equity with over 85% of voting rights. The filing did not indicate any immediate plans for a corporate combination.
Tesla’s stock remains well below its 52-week high of $498.83, trading around $348.95 in early Monday trading. The company is scheduled to unveil its Cybercab robotaxi at an event in Austin, Texas on September 3, an initiative expected to shape future revenue streams.
