Trump Eases Auto Tariff Policy! Tesla Stock Soars, $300 Threshold Within Reach!

TradingKey - Trump has eased car tariffs, causing Tesla's stock to jump over 2%. The stock is expected to keep rising. 

On Tuesday,Tesla Inc (TSLA), the largest electric vehicle maker in the U.S., saw a 2.15% increase. It is now at $292. The stock is trending towards breaking a key support level established since March. If it stabilizes above $300, it could signal a reversal.

Tesla stock price trend chart, TradingView.

According to reports, imported cars will no longer face separate tariffs on aluminum and steel. This change aims to prevent overlapping tariffs. Additionally, the previous 25% tariff on foreign car parts has been adjusted. Car manufacturers can now apply for partial refunds: 3.75% of each U.S. car's value in the first year, 2.75% in the second year, and no refunds after that.

Recently, Tesla's stock surged nearly 10% due to favorable autonomous driving policies. On April 24, the U.S. announced a relaxation of some review processes for self-driving cars, enhancing competitiveness against Chinese automakers.

This year, Tesla's stock faced significant declines due to tariffs and Musk's political actions, with a maximum drop of 56%. Now, with the easing of tariffs and support for domestic car manufacturers, combined with Musk's reduced involvement in government efficiency matters, these factors provide crucial support for Tesla's stock price.