Tesla stock gains on China trade deal, market cap back above $1T

In This Article:

Tesla (TSLA) shares jumped over 12% in the last five trading days, lifted by a 90-day tariff pause agreed upon by US and China trade officials..

Morning Brief anchor Madison Mills breaks down how Tesla’s exposure to China is both a risk and a potential rebound opportunity.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

00:00 Brad

It's time now for our charts of the day. Let's send it on over to Catalyst co-host, Madison Mills for a look at Tesla.

00:08 Madison Mills

That's right, Brad. Taking a look at Tesla behind me over the past five days, you can see it's up over 12% with a huge pop coming into today off the back of that news of the 90-day pause on those triple digit levies between the US and China here. So for Tesla, it's not just about that 90-day pause and how that's lifting the entire stock market this morning, right? It's also about the fact that Tesla is exposed in China in particular, and that is in part why we are seeing Tesla's market cap here soaring towards that $1 trillion dollar mark. Tesla, remember, having 20%, over 20% of its revenue coming from China in the year 2024. Remember that these tariffs, they don't only hurt US consumers, they also hurt China consumers, right? And so if the Chinese consumer is struggling, they may not be able to buy as many Teslas. And in fact, we've actually seen a shift in consumption from Chinese consumers over to other brands, the likes of BYD, some of that homegrown purchasing taking hold and putting pressure on Tesla. So one of the key questions going forward is that Chinese consumer rebound going to be good for a name like Tesla? And also more broadly, we've been talking a lot to our sources this morning about the fact that the leadership going into where the market stood on April 2nd will likely be the leadership that emerges as we do come out of that market lows. Tesla, of course, one of the biggest gainers prior to that so-called liberation day on April 2nd that sent stocks lower. So will we continue to see Tesla rebounding to the upside? Of course, that is a key question going forward.