Tesla (NASDAQ:TSLA) fell in early trading on Monday as investors continue to assess the Austin-based company's decline in Q1 deliveries and the outlook for the balance of the year amid tariff-induced economic turmoil

"The tariffs in their current form will disrupt Tesla, the overall supply chain, and its global footprint which has been a clear advantage over the years versus rising competitors like BYD," warned Wedbush Securities analyst Dan Ives. "The backlash from Trump tariff policies in China and Musk’s association will be hard to understate, and this will further drive Chinese consumers to buy domestic such as BYD, Nio, Xpeng, and others," he added.

Wedbush Securities lowered its price target on Outperform-rated Tesla (NASDAQ:TSLA) to $315 to reflect the firm's new softer demand estimates. 

Dunne Insights CEO Michael Dunne also warned on the potential of tariffs to boost Chinese electric vehicle makers. He noted the ability to push costs lower is BYD's (OTCPK:BYDDF) superpower and key advantage amid the tariff scenario. "Imagine tomorrow that the doors [to the US] are open," he highlighted Dunne. "BYD comes in and says, 'hey America, how would you like to have a $30,000 compact or a midsize SUV or pickup truck that’s 20% lower than what the guys in Detroit are offering?' That’s where the real vulnerability is."

Shares of Tesla (TSLA) were down 4.88% to $227.94 in the premarket session on above-average volume.

On a year-to-date basis, Tesla (TSLA) is down 41.0%, while NIO (NIO) is down 20.6% and Li Auto (LI) is 3.8% lower. Meanwhile, XPeng (XPEV) has surprised with a +60% rally for 2025 and BYD Company Limited (OTCPK:BYDDF) is 30% higher.