Tesla faces significant challenges from Trump's proposed tariffs

Tesla has reported a 71 percent drop in annual sales, marking its first recorded decline. The company's stock has fallen due to recalls, quality issues, and CEO Elon Musk's political actions. Tesla executives have expressed concern over potential tariffs from President Trump, which could increase costs and impact their supply chain. They sent a letter to the U.S. Trade Representative highlighting difficulties in sourcing parts domestically. The letter warns of retaliatory tariffs from other countries, which could worsen trade relations. This situation adds to existing challenges, including the potential reduction of EV tax incentives that have previously supported Tesla.