Tesla shares surge following Trump’s tariff suspension announcement
(MENAFN) Shares of US-based electric vehicle manufacturer Tesla experienced a significant surge of 22.69% at the close of trading on Wednesday. This dramatic increase followed an announcement by President Donald Trump of a 90-day pause on reciprocal tariffs for countries, with the exception of China.
As a result of the announcement, Tesla's share price climbed to $272.2, boosting the company’s market capitalization to $852.9 billion.
This positive movement comes after a period of decline for the EV producer's stock, which had fallen by approximately 44% since December of the previous year. This downturn was attributed to increasing competition from China and the close relationship between Tesla CEO Elon Musk and President Trump.
Recent reports indicate that Elon Musk's net worth peaked at $486 billion in December, largely due to his investments in Tesla, SpaceX, the social media platform X, and various other enterprises. However, since Donald Trump assumed office, Musk's financial standing has taken a downturn.
According to reports, Musk has faced estimated losses surpassing $130 billion since mid-January. This includes a staggering $31 billion drop over the last Thursday and Friday, followed by an additional $4.4 billion loss on Monday. These financial setbacks are primarily attributed to declining Tesla stock prices, which have been affected by Trump's tariffs, investor apprehensions, and decreasing sales, partly influenced by Musk's prominent public involvement in the Trump administration.
Despite recent fluctuations, Tesla's market capitalization had reached a high of $1.4 trillion in December, surpassing the combined value of the next 40 largest public automakers.
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