Tesla Shares Rise Following Trump’s Trade Deal Announcement

Shares of Tesla (NASDAQ: TSLA) saw a notable increase on Thursday. As of 3:20 p.m. ET, the electric vehicle (EV) maker’s stock gained 4.1%, having peaked at a 4.9% rise earlier in the day. This uptick aligned with the broader market, with the S&P 500 increasing by 1.1% and the Nasdaq Composite rising by 1.8%.

The boost in Tesla’s stock follows President Donald Trump’s announcement of a trade agreement with the United Kingdom.

Details of the Trade Agreement

Tesla’s share price jumped after Trump presented the general framework of the trade deal with the U.K. This marks the first significant agreement from his administration since imposing extensive tariffs back in April. While many specifics of the deal remain vague, Trump stated, “The final details are being written up,” indicating that a more definitive agreement will follow in the coming weeks.

Despite high optimism, the tentative deal does not currently include a reduction of the U.K.’s 10% tariff on U.S. automobiles. Nonetheless, it leaves the possibility open for those tariffs to be lowered, alongside potential caps on the number of vehicles sold in the U.S. This news seems to have been sufficient to encourage investor confidence and drive the stock price higher.

Image source: Getty Images.

Challenges Ahead for Tesla

This announcement arrives at a crucial moment for Tesla, which has faced declining sales in key markets, including the U.K., despite a general increase in EV sales. In a recent earnings call, Tesla’s CEO Elon Musk indicated that he would focus more intently on his role after facing some backlash from investors regarding his involvement with the Trump administration. Even with Musk’s renewed attention, some analysts, including myself, believe that the stock remains overvalued.

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