Tesla (TSLA) stock experienced a decline of up to 6% on Monday, contributing to a broader downturn in Big Tech stocks. Investor apprehensions were fueled by President Trump's tariff policies and concerns over CEO Elon Musk's involvement in government affairs, which could deter potential buyers.

President Trump's plans to impose 25% tariffs on foreign automobiles and specific auto parts this week have added to the unease. Despite Tesla being less exposed to the tariffs compared to other car companies, Elon Musk acknowledged that the impact on the company would still be significant, stating that Tesla would not emerge unscathed.

Even Tesla enthusiast Dan Ives, who had been positive about the company, acknowledged on Monday that no one would benefit from the tariffs, including Tesla, which would be compelled to raise prices as a result.

As of 11:51:36 AM EDT, Tesla's stock had fallen by over 38% in 2025. The company is expected to reveal its electric vehicle sales figures for the March quarter on Wednesday, with an average estimate of 390,342 vehicle deliveries according to Bloomberg data. However, some analysts anticipate lower figures.

Analysts such as Stifel's Stephen Gengaro and RBC Capital's Tom Narayan have expressed concerns about Tesla's performance. Gengaro noted declining sentiment towards Elon Musk and highlighted potential hurdles in sales due to delayed releases of new Tesla models. He reduced Tesla's price target but maintained a Buy rating. Meanwhile, Narayan cited weak sales in China and reduced demand in Europe as contributing factors to Tesla's challenges.

Investors are particularly worried about the negative impact that Elon Musk's ties with Trump and right-wing politicians in Europe have had on Tesla's brand, resulting in sales declines in key markets. Protest actions against Musk and Tesla have added to the sales obstacles faced by the company.