April 10 - Tesla ( NASDAQ:TSLA ) shares surged more than 22% on Wednesday after U.S. President Donald Trump reversed course on aggressive tariff proposals, easing trade concerns and unleashing pent-up investor demand. The electric vehicle maker closed at $272.20, adding nearly $200 billion in market value its sharpest single-day gain in over a decade.
The jump followed Trump's unexpected announcement of a 90-day pause on planned tariff hikes and a reduction to a 10% reciprocal rate. The move temporarily shields U.S.-based exporters, excluding those shipping from China, which will face a steep 125% tariff. Effective immediately, Trump wrote on Truth Social, China will be charged more due to its lack of respect for global markets.
Market response was swift. Tesla's rally led a broader tech resurgence, helping the Nasdaq Composite notch a 12% gain its strongest session since 2001. The S&P 500 rose 9.5%, its best day since the 2008 financial crisis. The Dow Jones Industrial Average climbed nearly 3,000 points.
Despite ongoing questions around demand and competition, Tesla's explosive rebound highlights its enduring appeal when macro winds shift, particularly with tariffs off the table, for now.
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