Tesla stock blew up on Monday, jumping more than 10% and putting an end to a brutal nine-week losing streak, according to data from CNBC. That made it the best-performing stock in the S&P 500 for the day.
The last time it did anything close to this was November 6, 2024, one day after Donald Trump won the presidential election. Even after today’s jump, the stock is still down over 44% from its peak in December.
The rally comes after months of sell-offs caused by rising anger over Elon Musk’s political activity. His loud support for far-right policies triggered consumer boycotts across the U.S. and Europe.
TSLA one-hour price chart. Source: TradingView
That wasn’t just people canceling orders. There were multiple incidents of vandalism and arson at Tesla showrooms and charging stations, both in the U.S. and overseas, all of which fueled the stock’s collapse.
Morgan Stanley cuts deliveries as Musk defends stock to workers
On Friday, Morgan Stanley cut its first-quarter delivery forecast, warning that Tesla would post a 9% year-over-year decline. The bank blamed declining demand, negative brand sentiment, and rising competition, according to CNBC. The note from the firm directly tied the lower forecast to Elon’s political shift, saying it had turned off a large chunk of consumers worldwide.
At an all-hands meeting on the evening of Thursday, Elon told employees to hold on to their shares, saying, “Hang onto your stock.” He also said the Model Y would still be “the best-selling car on Earth again this year.” That claim came despite the recent demand collapse and production concerns highlighted by analysts.
The rally on Monday wasn’t just about Tesla’s internal situation. Investors got some relief from Washington D.C., too. According to The Wall Street Journal, the reciprocal tariffs planned by President Trump for April 2 might be less aggressive than expected. The Journal said that industrial sectors may be left out of the initial round, while a separate report from Bloomberg stated that some countries could be exempt entirely. Both outlets warned that the situation is still fluid, and nothing is locked in yet.
That news sparked broader optimism across Wall Street. Investors had been bracing for a full-blown trade war. But the idea of a narrower rollout gave traders something to cling to. That helped lift major indexes and tech names, with Tesla leading the pack.
Trump confirms delay for key sectors while stocks post sharp gains
During a press briefing on Monday afternoon, President Trump told reporters that tariffs on industries like autos and pharma would still happen, but they won’t be part of the initial April 2 rollout.
That lined up with earlier reports and confirmed that sector-specific tariffs are being held back for now. Trump also said that new tariffs will be announced soon, adding that they will hit autos, lumber, and chips next.
Markets responded quickly. On Monday, the Dow Jones Industrial Average jumped 429 points, or about 1%. The S&P 500 rose 1.4%, while the Nasdaq Composite gained 1.9%.
Alongside Tesla’s more than 10% climb, other major tech names like Meta and Nvidia also moved up roughly 3%. But the biggest spotlight stayed on Tesla, which has now added to its small Friday gains and finally broke its losing streak.
Charlie Ripley, senior investment strategist at Allianz Investment Management, said on Monday, “Market conditions are improving dramatically as the angst around reciprocal tariffs is somewhat diminishing.” He also said, “Should the administration come through with a more targeted and tactical strategy around tariff implementation, risks of a full-blown trade war are reduced.”
Traders are still on edge. Inflation is rising, and recession fears haven’t gone anywhere. But Trump’s comments and the tariff reports gave just enough clarity to calm markets for the day. The hope is that the U.S. can avoid a deeper economic slowdown tied to international retaliation.
For weeks now, recession warnings have been everywhere. A weak consumer sentiment report earlier this month added fuel to the fire. Starting in late February, the S&P 500 dropped fast and entered correction territory. That sent alarm bells through every trading desk in the country.
On Friday, March 21, Trump already started signaling a shift. Speaking to reporters, he said there could be “flexibility” in the tariff plans. That alone helped lift the S&P 500, which was heading for its fourth straight weekly loss, according to CNBC. By the end of that session, the index had managed to post a small gain. It now sits 7.8% below its record high. The Nasdaq Composite, after four straight down weeks, also bounced back slightly and now stands 12% below its all-time high.
Despite the bounce, nothing is stable yet. Trump’s tariff threats are still hanging over everything. He confirmed on Monday that new tariffs will hit the auto, lumber, and chip sectors “in the coming days.” That means Tesla and other automakers might have just a short window before the next wave of policy risk slams the sector again.
Still, for one day, the rally was real. Tesla jumped. Tech moved higher. And traders who’d been living off anxiety finally exhaled. But with Trump’s tariffs still loading, and Elon’s political baggage still burning through brand trust, nobody’s calling this a comeback. It’s just Monday.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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