Tesla stock drops 2.4% on Trump's 50% Canada tariff and China recall

Tesla's stock fell 2.4% in morning trading after President Trump announced a 50% tariff on all Canadian imports, including vehicles and steel, effective January 1, 2027, triggering a broad selloff among US automakers. The policy shock hit the sector hard, with Tesla falling alongside Ford, General Motors, and Stellantis as investors reassessed supply chain risks. Tesla also faced pressure from a major safety recall in China affecting approximately 2.98 million vehicles due to concerns about electronic door handles. The recall, the largest in China's automotive history, dragged down Chinese EV stocks including Xiaomi, Li Auto, Xpeng, NIO, and BYD. A separate SEC filing revealed Elon Musk controls about 48.4% of SpaceX equity with over 85% voting rights, fueling merger speculation. Tesla shares now trade at $354.18, down from a 52-week high of $498.83.