Tesla Inc. shares declined sharply following CEO Elon Musk's warning of potential challenges ahead for the company. Musk indicated that Tesla could face "a few rough quarters" as the electric vehicle market adjusts to the expiration of federal EV tax credits in the United States and the imposition of new tariffs. The company reported its steepest sales decline in over a decade, contributing to the negative market reaction. Tesla's stock fell between 6% and 10% across various trading sessions after Musk's comments and the earnings report. The loss of purchase incentives and increased costs due to tariff pressures were cited as key factors impacting Tesla's near-term outlook. Investors have responded by reassessing Tesla's growth prospects and pricing strategies amid rising competition and changing market conditions.