Tesla Shares Surge 9.5% Amid Relief from Tariff Concerns and Broader Market Optimism

Shares of Tesla experienced a significant increase of 9.5% on Monday, marking a notable recovery for the company, which has faced challenges due to sluggish sales and criticism directed at CEO Elon Musk. This surge in stock value comes after Tesla submitted a letter to Jamieson Greer, the trade representative under the Trump administration, expressing concerns about the company’s vulnerability to retaliatory tariffs. These tariffs were anticipated as a response to the trade measures implemented by the Trump administration.

The rise in Tesla’s stock price coincided with reports from Bloomberg and The Wall Street Journal over the weekend, suggesting that President Trump had decided against imposing broad tariffs on key industrial sectors, including automobiles, pharmaceuticals, and semiconductors. This development appeared to have a positive impact on the stock market, with stocks reaching their highest levels in over a week.

In a related development, South Korean automotive company Hyundai announced a substantial investment in the United States, including the establishment of a new $5.8 billion steel plant in Louisiana. This project is expected to create 1,300 jobs in the U.S., as stated by Hyundai’s executive chairman, Euisun Chung, during an event at the White House alongside President Trump. The announcement aligns with the administration’s push to encourage companies to relocate manufacturing jobs to the United States.

In response to the evolving trade policies, several domestic and international firms, such as Apple and Oracle, have unveiled plans to invest significantly in U.S. projects over the next four years. These investments reflect a broader trend of companies seeking to align with the administration’s objectives of boosting domestic manufacturing and job creation.