Tesla’s stock experienced significant gains in trading on Monday. By 2:30 p.m. ET, the company’s share price had increased by 10.3%, compared to a 1.4% rise for the S&P 500 and a 1.9% gain for the Nasdaq Composite.
Following recent declines, Tesla’s valuation is gaining upward momentum due to positive trends in the broader market. The company’s stock is also benefiting from news regarding a crucial feature rollout in China and potential expansion plans in India.
Investors are reacting to changing expectations about upcoming tariffs. New tariffs are set to be implemented on April 2, and stocks are rising on optimism that President Trump may adopt a less stringent approach than initially anticipated. The new import taxes involve reciprocal tariffs, mirroring those imposed by other countries, but their application may be more limited than expected, potentially alleviating investor concerns about an escalating trade war.
Additional positive news for Tesla investors came from a Reuters report stating that the company will soon launch its Full Self-Driving (FSD) feature in China after receiving regulatory approval. The rollout had been delayed due to new regulatory standards, but it is now authorized for deployment.
Furthermore, Tesla’s expansion plans in India were highlighted in a recent DigiTimes report, which indicated that Tesla is negotiating with Tata Motors for component sourcing for its electric vehicles. The existing incentives in India for boosting domestic auto manufacturing suggest that Tesla may be preparing to expand its operations in the country.
