Tesla Stock Is Climbing Monday: What's Going On?
Tesla, Inc. (TSLA) shares rose 6.3% to $317.00 on Monday following a temporary reduction in tariffs between the U.S. and China. The U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on U.S. goods from 125% to 10% for three months. This trade deal aims to alleviate supply chain uncertainties, benefiting Tesla and other auto stocks like Lucid Group, Inc. (LCID).
Tesla, Inc. TSLA shares are trading higher Monday after the U.S. and China agreed to a temporary reduction in most tariffs on each other’s goods.
What To Know: The trade deal will lower U.S. tariffs on Chinese imports from 145% to 30% and Chinese levies on U.S. goods from 125% to 10% for a three-month period, according to NPR.
Vice Premier He Lifeng led the discussions for China, while Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent represented the U.S. side.
At a press conference, Bessent said the two sides recognized mutual interests, including a shared goal of balanced trade. Greer added that the countries see a "positive path forward" in cooperating to fight fentanyl smuggling.
The current U.S. tariff structure includes a 10% base tariff on all imports, plus an extra 20% implemented earlier this year by President Donald Trump amid concerns over Chinese production of fentanyl-related chemicals.
The U.S. is also reportedly negotiating with China to boost its purchases of American goods.
Tesla stock may be trading higher as a reduction in tariffs could alleviate supply chain uncertainty in the sector. Other auto stocks, including Lucid Group, Inc. LCID, are also trading higher following the news.
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TSLA Price Action: At the time of publication, Tesla stock is trading 6.3% higher at $317.00, according to data from Benzinga Pro.
Image: via Shutterstock
