Why Tesla Stock Is Surging Today

Source The Motley Fool

Shares of Tesla (NASDAQ: TSLA) are climbing on Thursday. The electric vehicle (EV) maker's stock gained 4.1% as of 3:20 p.m. ET and was up as much as 4.9% earlier in the day. The rise comes as the S&P 500 gained 1.1% and the Nasdaq Composite rose 1.8%.

The company's stock is seeing a boost after President Donald Trump announced a trade agreement with the United Kingdom.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The first deal

Tesla shares climbed after Trump unveiled the broad outline of a trade agreement with the United Kingdom. This is the first major deal his administration has been able to put together after Trump imposed sweeping tariffs in April. It's important to note that many specifics remain unclear, and nothing was formally signed. "The final details are being written up," Trump said. "In the coming weeks, we'll have it all very conclusive."

And while optimism is high following the announcement, the tentative deal as of yet does not include the lowering of the U.K.'s 10% tariff on U.S. automobiles. Still, it left the door open for these to be lowered as well as capping the number of vehicles the country can effectively sell into the U.S. This appeared to be enough for investors to send shares higher.

The US and UK flags on a white background.

Image source: Getty Images.

The future is uncertain

The announcement comes at a critical time for Tesla. The company has seen its sales plummet across key markets -- including the U.K. -- even as EV sales at large are on the rise. In the company's recent earnings call, Tesla chief Elon Musk said he would devote more time to his duties as CEO after investor discontent grew from his role in the Trump administration. Despite Musk's return, I continue to think the stock is overvalued.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $303,566!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,207!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $623,103!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of May 5, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum Staking Surges Post-Pectra—Is a Bullish Breakout Brewing?Ethereum’s price has seen a moderate recovery over the past week, tracking closely with the broader crypto market’s positive momentum.
Author  NewsBTC
12 hours ago
Ethereum’s price has seen a moderate recovery over the past week, tracking closely with the broader crypto market’s positive momentum.
placeholder
EUR/USD faces pressure as US Dollar ticks higher, US-UK trade deal in focusEUR/USD ticks lower below 1.1300 during European trading hours on Thursday.
Author  FXStreet
12 hours ago
EUR/USD ticks lower below 1.1300 during European trading hours on Thursday.
placeholder
USD/CAD Price Forecast: Remains confined in a multi-week-old range; not out of the woods yetThe USD/CAD pair attracts buyers for the second successive day on Thursday and recovers further from the year-to-date (YTD) low, around the mid-1.3700s touched earlier this week.
Author  FXStreet
13 hours ago
The USD/CAD pair attracts buyers for the second successive day on Thursday and recovers further from the year-to-date (YTD) low, around the mid-1.3700s touched earlier this week.
placeholder
Ethereum To ‘Witness Big Breakout’ In The Next Two Weeks If This Level HoldsAs price continues to trade sideways, Ethereum (ETH) has reclaimed a crucial level, which could kickstart a breakout toward the $2,100 resistance.
Author  NewsBTC
14 hours ago
As price continues to trade sideways, Ethereum (ETH) has reclaimed a crucial level, which could kickstart a breakout toward the $2,100 resistance.
placeholder
Sui Price Forecast: SUI bulls aim for 15% gains as open interest and bullish bets increase among tradersSui (SUI) price extends recent gains, soaring10% higher at the time of writing on Thursday and approaching its key resistance level at $3.65.
Author  FXStreet
14 hours ago
Sui (SUI) price extends recent gains, soaring10% higher at the time of writing on Thursday and approaching its key resistance level at $3.65.
goTop
quote