Tesla shares surged 10% on possible tariff relief and lower share price, drawing investors.

From Yahoo Finance: 2025-03-24 11:21:00

Tesla shares surged 10% on Monday after reports of the Trump administration excluding sector-specific tariffs and implementing reciprocal levies on April 2. Traders capitalized on the stock’s 40% decline this year. The rally lifted technology stocks, propelling U.S. indexes to two-week highs.

With Tesla on track for its biggest one-day jump since November, its valuation remains at $870 billion. Despite a turbulent first quarter, the EV maker’s stock saw a boost from Musk’s positive outlook in a recent meeting. Retail investors overwhelmingly favored buying over selling, contributing to the rally.

Tesla’s shares, oversold and undervalued, received a significant boost from reports of less severe reciprocal tariffs. The stock’s high valuation compared to traditional automakers like Ford and GM, as well as strong competition from Chinese rival BYD, have drawn mixed reactions among investors.

Read more: Tesla jumps as possible tariff leeway, lower share price draw investors