Tesla’s shares surged by nearly 7% Monday, beating the broader market as trade tensions eased between China and the US. This lifted investor confidence and helped push the market cap of the electric car maker back over the $1 trillion mark.
Stocks rose over 6% to $318.80 due to the positive outcome of trade negotiations with Chinese officials held in Switzerland.
S&P 500 and Dow Jones Industrial Average both rose by 2.7% and 2.4% respectively.
Tesla shares had an erratic run in 2025. Tesla shares have had a turbulent run in 2025.
Tesla is still down over 15% on the whole year, despite the recent recovery.
Tesla’s trade detente is a positive step
This agreement also includes a reduction of US tariffs for Chinese products to 10% from 34%. Additional levies will be suspended while negotiations continue.
China has also reduced its tariffs. Tesla’s largest and most effective factory in China is responsible for 22% of the company’s total revenues.
Tesla’s stock is heavily influenced by geopolitical risk, even though it sources the majority of its components locally to limit direct costs.
Wedbush analyst Dan Ives called the tariff-pause “a positive step in the correct direction”.
Analyst remains bullish
Cantor-Fitzgerald reaffirmed their Overweight rating for Tesla, with a price target of $355 despite the sharp decline in sales in Europe.
It cited the 62% drop year-on-year in UK registrations of new vehicles in April. Other countries that saw steeper drops were Denmark (-67%), The Netherlands (-74%), Sweden (-81%), as well.
Spain, Belgium Germany and France also saw similar declines.
Andres Sheppard, an analyst at Investec Securities Inc. acknowledged that the numbers this year were a stark contrast from last year but maintained his bullish outlook for the long term.
Goldman Sachs, on the other hand, reiterated their Neutral rating for Tesla, maintaining its price target at $235.00.
Tesla enters India
Business Standard, citing people familiar with the situation, reported that Elon Musk’s Tesla was looking at land parcels located in Maharashtra’s Satara District to build a completely knocked-down (CKD), assembly facility for electric cars.
CKD (complete knockdown) units are made by importing parts of vehicles and assembling the vehicle locally. This is a common strategy to reduce import duties while meeting local sourcing standards.
Tesla reportedly had joint venture discussions with Hyderabad’s Megha Engineering in the past, but these did not proceed.
According to reports, the company is in preliminary talks with Indian companies about setting up a CKD.
The report stated that Tesla will now aim to complete its entry into India’s market by April 2026.
The post Tesla Stock Surges 6%: Analyst Sees More Gains Ahead may be updated as new information unfolds
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