Why Tesla Stock Continued Its Monster Run Friday
Tesla (NASDAQ: TSLA) reported a relatively weak first quarter less than a month ago, but investors have been piling into the stock anyway. That continued today with Tesla shares soaring 5.7% as of 10:45 a.m. ET.
That gives the stock a nearly 30% return since it reported first-quarter results on April 22.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Image source: Tesla.
It's all about China
Investors shrugged off a poor first quarter after the company said it was still planning to launch its fully autonomous driving technology on the roads in June. Additionally, CEO Elon Musk said he would be spending more time at Tesla and less in his role working with the Trump administration in Washington, D.C.
But there hasn't been much good news on the business side since that quarterly report. Sales in Europe look to be plunging. Reports have shown year-over-year April sales declines of about 50% or more in Germany, the U.K., France, Sweden, and Denmark. So why has the stock been soaring recently?
In addition to optimism surrounding its robotaxi launch, today's jump comes as Treasury Secretary Scott Bessent heads to Switzerland this weekend for trade talks with his Chinese counterparts. This morning, White House Economic Advisor Kevin Hassett said the following in an interview with CNBC:
Everything that's been going on with the meeting in Switzerland is very promising to us. We're seeing extreme respect, treating both sides with respect. We're seeing collegiality and also sketches of positive developments.
China is a critical market for Tesla. Its Shanghai plant is its largest and potentially most profitable. Tensions between the U.S. and China could put Tesla in a precarious position, especially considering Musk's high-profile role with the Trump administration.
Investors seeing a thaw in the relations between the two powerful countries are eyeing Tesla as a big beneficiary today. Resolution on trade disagreements seems a long way away, though. This weekend may be a start, but the stock running so much higher seems like an overreaction.
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 $304,370!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $37,442!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $617,181!*
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
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Recommended Articles
