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Tesla (NASDAQ:TSLA) shares surged about 5% on Friday as investors cheered signs of renewed executive focus and improving U.S.-China trade sentiment, despite recent weakness in the electric vehicle maker's global sales.
The stock extended its rebound to nearly 30% since Tesla posted a disappointing Q1 update on April 22, where slowing deliveries and shrinking margins weighed on investor outlook.
CEO Elon Musk said he plans to dedicate more attention to Tesla going forward, pulling back from his duties in Washington under the Trump administration. The commitment appears to have reassured investors that the company will prioritize operational execution.
Market participants also reacted to potential easing of tensions between the U.S. and China. U.S. Treasury Secretary Scott Bessent is scheduled to meet with Chinese officials this weekend in Switzerland. White House advisor Kevin Hassett told CNBC the tone of negotiations has been respectful with signs of progress.
China remains a core growth market for Tesla, with its Shanghai facility serving as the company's largest and most cost-efficient plant. A de-escalation in trade friction could be a meaningful tailwind for Tesla's business in the region.
This article first appeared on GuruFocus.