- Tesla (TSLA) stock surged more than 10% in midday trading on Monday, leading the “Magnificent Seven” with a 10% gain, driven by reports that Trump’s April 2 tariffs may spare the auto sector, easing concerns for the $800 billion market cap EV maker.
- Despite a 32% year-to-date drop amid sales declines in Europe, China, and the U.S., and backlash over CEO Elon Musk’s Trump administration role, Tesla’s shares are up 59% year over year, with recent gains tied to a 2025 robotaxi launch and tariff relief.
- Musk encouraged employees to hold stock in a recent all-hands meeting, touting autonomous tech and robotaxis, while addressing challenges like falling prices and protests, including a Monday attack on an Austin showroom involving “incendiary” devices, under FBI investigation.
Tesla (TSLA) stock soared $25.18, or 10.12%, to $273.90 in midday trading on Monday, outpacing its “Magnificent Seven” peers as investor sentiment shifted favorably amid reports that President Donald Trump’s tariff plans may spare the auto sector come April 2. The $800 billion market cap electric vehicle giant has been grappling with a complex narrative: while its shares are down 32% year to date – reflecting sales declines in Europe, China, and the U.S., alongside brand backlash tied to CEO Elon Musk’s political involvement – they’ve also climbed 59% year over year, buoyed by long-term optimism. Monday’s surge, sparked by eased tariff concerns, builds on last week’s momentum when Tesla unveiled plans for a 2025 robotaxi service launch, a move that began lifting the stock from its recent trough.
Musk, a polarizing figure now steering Trump administration efforts to cut federal spending, addressed Tesla employees in an all-hands meeting last week, urging them to hold their stock despite its 32% annual drop and emphasizing breakthroughs in autonomous vehicles, robotaxis, and humanoid robots as future value drivers. His assurances come amid tangible challenges, including a fresh wave of unrest targeting Tesla facilities—most recently, an attack on Monday at an Austin, Texas, showroom where police discovered multiple “incendiary” devices, prompting FBI involvement. This incident follows a pattern of protests linked to Musk’s political role, compounding pressures from slipping sales and a paused Full Self-Driving trial in China, which Tesla vowed to resume once regulatory hurdles are cleared.
The market’s rally on Monday with the S&P 500 (^GSPC) climbing over 1.5%, the Dow Jones Industrial Average (^DJI) gaining 1.3% (an increase of more than 523 points), and the Nasdaq (^IXIC) surging by 2%, reflects a reprieve from tariff fears that had threatened Tesla’s bottom line, particularly given its global supply chain and manufacturing footprint. With the stock up 15% in the last five trading session, investors appear to be recalibrating expectations, balancing near-term headwinds – sales dips and Musk-related controversies – against the promise of autonomous technology set for 2025. Musk’s vision, articulated last week, hinges on Tesla’s ability to innovate through adversity, though the Austin attack underscores the external risks amplifying an already volatile year. For now, the $800 billion EV leader rides a wave of tariff relief, but its path to sustained recovery remains fraught with operational and perception challenges.
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