Tesla slides 6% as looming auto tariffs tank tech stocks
Shares of mega-cap tech leaders tumbled Wednesday afternoon after a surprise announcement of auto tariffs from the White House.
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Getty Images; Chelsea Jia Feng/BI
- Tesla dropped over 6% on Wednesday.
- Tech stocks are selling off on an announcement of auto tariffs coming Wednesday.
- The sell-off puts the S&P 500 on track to snap a three-day winning streak.
Tesla shares dropped more than 6% amid a broad sell-off on Wednesday after the White House said President Donald Trump would announce auto tariffs at 4:00 p.m. ET.
Few details were provided before the announcement, but investors wasted no time reacting to the news. Shares of the electric vehicle manufacturer tumbled, and the unexpected tariff update also jolted other car makers and tech stocks.
Artificial intelligence giant Nvidia was down 6% already on a report it could face fresh regulatory hurdles in China, which accounts for 13% of its annual sales. Beijing is reportedly tightening chip energy standards, and these new rules would exclude Nvidia's best-selling processor.
The drop puts the S&P 500 on track to snap a three-day streak of gains. The benchmark index rallied in recent days amid a softening of Trump's reciprocal tariff policy, which is scheduled to kick
The S&P and tech-heavy Nasdaq Composite dropped 1.12% and 1.99%, respectively. The Dow Jones Industrial Complex shed 146 points.
