Tesla (TSLA) witnessed a significant leap in its share price on Friday, continuing the upward momentum that began on Thursday. The surge in the company’s stock can be attributed to the optimism surrounding trade deals, triggered by President Donald Trump’s announcement of a trade agreement with the United Kingdom. Trump also hinted that more trade deals were in the pipeline, which further buoyed investor sentiment.
In recent trading, Tesla’s stock was up by nearly 7%, reaching a price of $303.75. This marked its highest value since February, positioning the shares to record gains for the third consecutive week. The broader market also experienced growth as investors celebrated the news of the U.K. trade deal. This positive movement across the market provided a favorable backdrop for Tesla’s stock surge, indicating that the overall economic outlook was improving in the eyes of investors.
The positive sentiment for Tesla’s stock may not end here. There is anticipation that the markets could receive more good news over the weekend. U.S. representatives are scheduled to meet with Chinese officials in Switzerland for trade talks. These discussions have the potential to further impact the market positively, and Tesla could benefit from any progress made in these negotiations.
However, it’s important to note that Tesla’s stock had a gloomy start to the week. A series of negative news regarding declining sales and vehicle registrations in multiple countries, including several in Europe and China, had initially dampened the stock’s performance. Despite the recent rally, Tesla’s shares are still down by nearly 25% since the start of the year. In the coming weeks, investors will be eagerly awaiting updates on Tesla’s self-driving robotaxi plans. The company had stated in its earnings report last month that it still intends to commence offering paid rides in Model Y vehicles in Austin, Texas by the end of next month, which could potentially be a major catalyst for future stock performance.
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