Tesla stock today
This morning, Tesla (TSLA) opened on a positive note after losing 3.6% yesterday. At 12:47 PM ET, Tesla stock was at $212.60, up 1.6% for the day versus 0.4% and 0.5% gains in the S&P 500 Index and the NASDAQ Composite Index, respectively. Including today, the stock has traded on a positive note in six out of the last eight sessions.
What has driven the stock gains?
Media reports about Tesla’s strong second-quarter deliveries have helped Tesla stock rise lately. Also, the broader-market recovery after Federal Reserve Chairman Jerome Powell’s indication of a possible rate cut in the near term supported a positive trend in Tesla stock.
Trump administration denies tariff relief to Tesla
According to a recent Reuters report, the Trump administration has refused to exempt Tesla Model 3’s center screen and computer, which are imported from China. The report cited letters from the US trade representative’s office to claim that the US considers these imported products “strategically important related to ‘Made in China 2025’ or other Chinese industrial programs.”
The latest denial comes slightly over a month after the Trump administration rejected Tesla’s request to exempt its China-made Autopilot control unit from 25% import tariffs.
How the decision affects Tesla’s
In the last year, ongoing US-China trade tensions have increased Tesla’s financial burden due to higher tariffs on its cars and car parts from both sides of the dispute.
The Elon Musk–led company is striving to steer itself toward profitability while maintaining production and sales growth. After reporting profitability in the final two quarters of 2018, Tesla reported losses again in the first quarter this year.