Key Takeaways
Trump’s new tariffs sparked a sharp tech sell-off, with Tesla, Amazon, and Nvidia sliding and Chinese stocks dipping, though Big Tech held firmer on AI optimism.
Tesla also faced issues in the EU, where sales continued to drop, but Norway offered a brief lift as the Model Y topped March EV sales.
SoundHound AI is being sued over misleading financials, while OpenAI won a key legal move to consolidate copyright suits into one major case.
Global markets reeled after Donald Trump’s April 2 announcement of sweeping new tariffs, with trading seeing sharp declines.
U.S. tech giants Amazon, Apple, and Nvidia led the downturn, losing over 10% the entire week. The drop reflects investor concerns over escalating trade tensions and their impact on companies with global manufacturing footprints.
Chinese stocks followed the downward trend, though tech heavyweights like Alibaba, Baidu, and Tencent saw more moderate declines.
The tariffs will impose a 54% import duty on Chinese goods, intensifying pressure on exporters. Still, Chinese Big Tech stocks remain up year-to-date—between 9% and 55%—thanks to strong performance in the AI space, contrasting with losses across the so-called “Magnificent Seven” U.S. tech stocks.
Meanwhile, Cathie Wood‘s Ark Invest is doubling down on Chinese tech. Ark’s ARKW and ARKQ ETFs recently bought over 120,000 Baidu shares—worth around $12 million—marking the firm’s first significant re-entry into Chinese Big Tech since 2022. Ark’s ETFs have lost 8%–15% this year amid poor U.S. tech performance.
Tesla faces mounting challenges across Europe, with sales plummeting in key markets. According to industry data , registrations fell by 45% in the first two months of 2025 compared to last year in France.
The company is also grappling with growing public backlash and boycotts tied to CEO Elon Musk’s polarizing political involvement, which is further weighing on its performance.
Tesla’s stock has dropped over 50% since peaking in mid-December 2024, marking one of its worst stretches since the dramatic declines of late 2022.
Two weeks ago, data from the ACEA showed Tesla’s electric vehicle sales in Europe plummeted 49% in the first two months of the year compared to the same period in 2023.
In Norway, Tesla’s newly upgraded Model Y—with ventilated seats and improved aerodynamics—emerged as the country’s best-selling EV in March and the first quarter of 2025.
Tesla sold 2,792 units, ahead of its closest competitor, Toyota’s bZ4X, which moved 2,122 units. This performance helped Tesla momentarily regain some ground in Norway’s highly competitive EV market.
Despite Tesla’s recent success, its market share in Norway dropped from 20% in 2023 to under 9% in early 2025, reflecting intensifying competition and a shifting market environment.
SoundHound AI faces a class action lawsuit for allegedly misleading investors about its financial reporting practices, particularly its Synq3 and Amelia Holdings acquisitions.
The suit, filed by Kessler Topaz Meltzer & Check, claims SoundHound overstated its ability to fix internal control weaknesses, leading to inflated goodwill and delayed financial filings.
On March 4, SoundHound announced it couldn’t file its 2024 annual report on time due to complex accounting tied to its acquisitions. A week later, its financial report admitted it lacked adequate systems to manage such complexities.
The stock has fallen nearly 63% since the start of 2025 and 14% last week .
