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Tesla (NASDAQ:TSLA) shares jumped more than 6% at Monday's open, pushing the company's market value past the $1 trillion mark, joining the tech giants' elite club.
The broader market rallied on hopes of eased U.S.China trade frictions. The S&P 500 climbed about 2.5% as investors cheered a temporary tariff reduction, which also lifted semiconductors and automakers.
Tesla's stock has been volatile in recent months as higher levies on Chinese imports drove up costs for its Cybertruck and Semi components. The new deal cuts U.S. duties on Chinese goods to 30% and China's on American products to 10% for 90 days while talks continue.
Like its peers, Tesla depends on a global supply chain, sourcing key parts from China, Mexico and Canada. The tariff truce is likely to ease margin pressure and smooth production costs.
In a related development, CEO Elon Musk has been invited to the Saudi-U.S. Investment Forum in Riyadh this week alongside President Trump. Last month, Tesla held a product event in Riyadh to showcase its leading electric-vehicle range and tap into Saudi Arabia's push for clean energy.
This article first appeared on GuruFocus.