Tesla’s shares surged nearly 12% on Monday as investors became optimistic about President Trump’s tariff plans. Reports that Trump would hold off on introducing levies on the auto sector eased concerns that Tesla’s bottom line would be impacted. The electric car maker had been on a downward trend, with sales slipping in key regions like Europe, China, and the US.
Tesla recently announced its plan to launch its robotaxi service in 2025, which helped stabilize the stock. However, the company faces regulatory hurdles before releasing its Full Self-Driving trial in China. CEO Elon Musk addressed concerns about his involvement in politics during an impromptu all-hands meeting last week.
The sales of Tesla’s new Model Y SUV have also been a concern, with some attributing the decline to Musk’s proximity to President Trump and his right-wing views. Despite this, shares are down roughly 31% year-to-date.
Source: https://finance.yahoo.com/news/tesla-stock-surges-nearly-12-to-lead-magnificent-7-stocks-higher-as-tariff-worries-ease-200525384.html