Tesla shares fall on Canada tariff news and China recall

Tesla shares fell 2.4% in morning trading after President Trump announced a 50% tariff on all Canadian imports, including vehicles and parts, effective January 1, 2027, hitting the broader auto sector. The tariff news triggered sell-offs across Ford, General Motors, and Stellantis as investors reassessed cost risks for companies deeply tied to North American supply chains. Tesla also faced pressure from a recall of nearly 2.98 million vehicles in China over electric door handle safety concerns. The recall, China's largest ever, dragged down Chinese EV stocks including BYD and NIO. Tesla's planned September 3 robotaxi unveiling in Austin failed to offset the negative sentiment, with shares trading at $354.18, down from a 52-week high of $498.83.