Tesla shares dropped 5% to US$383.68 on Feb. 3 following President Donald Trump’s announcement of new tariffs on imports from China, Canada, and Mexico.

The 10% tariff on Chinese goods could impact Tesla’s supply chain, as the company manufactures about half of its vehicles in China.

However, Tesla’s production facilities in the US, Berlin, and Shanghai give the company some flexibility, allowing it to avoid some of the challenges faced by other EV makers.

The stock was also impacted by declining vehicle registrations in Europe, with 63% drop in France, and 44% and 38% decrease in Sweden and Norway, respectively.

Recent Tesla developments