Tesla Stock Is Trading Lower Wednesday: What's Going On?

Tesla Inc TSLA shares are trading lower Wednesday following reports the company suspended plans to ship parts for its Cybercab and Semi from China.

What To Know: Tesla halted plans to ship Cybercab and Semi electric truck parts from China after President Donald Trump raised tariffs on Chinese goods amid an intensifying trade war, per Reuters.

The report indicates that Tesla initially planned to take on the costs after Trump imposed 34% tariffs on Chinese goods, but as the trade war escalated, the company decided to pivot.

Trump announced that he was raising additional tariffs on China to 84% last week. He then imposed additional tariffs on Chinese goods to 125%, bringing the total tariff rate up to 145%. China responded with retaliatory tariffs, furthering the trade war between the world’s two biggest economies.

Tesla was supposed to begin receiving certain components for Cybercab production in the coming months. A person familiar with the matter told Reuters that Tesla had been planning to start trial production of the Cybercab and Tesla Semi in October with mass production targeted in 2026.

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Multiple sources reportedly said that Tesla has been increasing the proportion of parts sourced from North America for its U.S.-based factories in anticipation of potential tariffs for approximately two years.

Tesla unveiled its Cybercab at a highly anticipated event in October and said at the time that it planned to start building the models by 2026. Benzinga reported in February that Tesla started hiring for the start of production of its Cybercab based on job listings on the company’s website.

Tesla has also said that it plans to ramp up production of its Semi electric trucks in 2026. The Reuters report suggests that those timelines could be pushed out, however, it’s not clear how long the parts order suspension will last.

Checks from Friday also showed that Tesla stopped taking new orders for its Model S and Model X vehicles on its Chinese website as the U.S.-China trade war continues to heat up.

TSLA Price Action: Tesla shares were down 2.39% at $248.10 at the time of publication Wednesday, according to Benzinga Pro.

Photo: courtesy of Tesla.