Tesla shares bounce back after hitting nearly 10% low at Wall Street open amid global market crash over Trump tariffs

Elon Musk-owned electric vehicle (EV) automaker Tesla Inc. shares recovered briefly after hitting an early market low at Wall Street's open on Monday, April 7.

After opening on Monday, Tesla shares dropped nearly 10 per cent to hit a low of $215.60 in the early market session, compared to $239.43 at the previous US market close.

However, after a while in the early market session on Wall Street, the shares recovered amid a broader US market recovery period, reaching $250.16, the intraday high so far as of 10:42 p.m. (EDT) on April 7.

Marketwatch data shows that Tesla shares are now trading 1.93 per cent lower at $234.81, compared to $239.43 at the previous stock market close.

Elon Musk's Tariff Woes

According to the news agency Reuters report on Monday, US President Donald Trump's chief trade advisor, Peter Navarro, dismissed billionaire founder Elon Musk's plea for “zero tariffs” between the United States and Europe.

Musk called for the request as Tesla is a automaker heavily dependent on the parts which are imported from other nations.

“When it comes to tariffs and trade, we all understand in the White House - and the American people understand - that Elon is a car manufacturer, but he's not a car manufacturer. He's a car assembler,” said Navarro, reported the news agency.

Tesla Shares

Tesla shares have given US stock market investors more than 500 per cent returns in the last five years and over 30 per cent returns in the last one-year period.

However, on a year-to-date (YTD) basis, Tesla shares have lost more than 40 per cent in 2025 and more than 14 per cent in the last five stock market sessions on Wall Street.

Stock market expert Anshul Jain, the Head of Research at Lakshmishree Investment and Securities, said that a breakdown of Tesla's stock below the $220 level would confirm the bearish grip and the key support prices will drop to $182 and $138 levels on the US stock market.

“Tesla failed to sustain a breakout at $440 from a massive 162-week-long rounding bottom pattern, leading to a sharp 55% decline. Over the past four weeks, the stock has been consolidating in a narrow range, indicating a potential downtrend continuation. A breakdown below the $220 level would confirm a bearish box breakdown, with the following key supports at $182 and $138—both being crucial weekly swing lows. With no substantial accumulation visible, further downside pressure appears highly likely in the coming weeks,” said Anshul Jain, the Head of Research at Lakshmishree Investment and Securities.

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