Tesla’s shares declined 2.4% to $354.18 in morning trading, extending losses from a 52-week high of $498.83. The drop mirrored declines across U.S. and international automakers, including Ford, General Motors, Stellantis, Xiaomi, Li Auto, Xpeng, NIO and BYD.
The selloff followed President Trump’s announcement of a 50% tariff on all Canadian imports, covering vehicles, automotive components and steel. The measure is scheduled to take effect on January 1, 2027, prompting investors to reassess supply-chain and cost risks across the sector.
Separately, China’s State Administration for Market Regulation ordered a recall of approximately 2.98 million Tesla vehicles—including Model 3, Model Y, Model S and Model X—citing concerns that flush-mounted electronic door handles may be difficult to operate in emergencies. The recall represents the largest in China’s automotive history.
Speculation over corporate restructuring intensified after an SEC filing disclosed that Elon Musk holds roughly 48.4% of SpaceX’s equity with over 85% of voting rights, raising questions about a potential Tesla-SpaceX merger.
Tesla is set to host a Cybercab robotaxi launch event on September 3 at its Gigafactory in Austin, Texas.
