TLDR:
- Tesla stock rose 0.9% in premarket trading Friday, aiming for third consecutive weekly gain
- CEO Elon Musk pledged to spend more time at Tesla and less in Washington
- President Trump announced tentative US-UK trade deal, boosting Tesla shares 4.1%
- The UK’s 10% tariff on US automobiles could potentially be lowered in final agreement
- Tesla faces challenges with Q1 sales down 13% year-over-year, missing expectations by 40,000 vehicles
Tesla shares are climbing as the electric vehicle maker aims for its third consecutive weekly gain. The stock rose 0.9% in premarket trading Friday to $287.30, outperforming the broader market indices.
The company’s stock has experienced a strong recovery in recent weeks. Shares jumped 18.1% the week Tesla reported first-quarter earnings on April 22.
Despite weaker-than-expected Q1 results, investors responded positively to Tesla maintaining its robotaxi development timeline. The company still plans to launch its robotaxi service in June.
During the earnings call, CEO Elon Musk made an important announcement. He stated he would dedicate more time to Tesla and reduce his Washington commitments.
This pledge addressed investor concerns about Musk’s political activities potentially impacting sales.
Trade Deal Boosts Investor Confidence
On Thursday, Tesla stock climbed 4.1% following President Trump’s announcement of a tentative trade agreement with the United Kingdom. This marks the first major deal since Trump imposed sweeping tariffs in April.
While specific details remain unclear and nothing has been formally signed, the news sparked optimism among investors. “The final details are being written up,” Trump said. “In the coming weeks, we’ll have it all very conclusive.”
The tentative agreement doesn’t yet include lowering the UK’s 10% tariff on US automobiles. However, it leaves the door open for potential tariff reductions.
The announcement also suggested possible caps on the number of vehicles the UK can effectively sell to the US.
These prospects were enough to drive Tesla shares higher as traders anticipated improved export conditions.
Sales Challenges Remain
Despite recent stock gains, Tesla faces ongoing sales challenges. The company sold approximately 337,000 cars in the first quarter, representing a 13% drop year-over-year.
This figure fell about 40,000 vehicles short of Wall Street expectations.
Sales data from the US, Europe, and China for April hasn’t shown a rebound yet. This continues to be a concern for long-term investors.
The company has seen its sales decline across key markets—including the UK—even as electric vehicle sales overall are rising.
During the recent earnings call, Musk acknowledged investor discontent about his involvement in the Trump administration. His pledge to refocus on Tesla aims to address these concerns.
Looking ahead, investors are primarily focused on the upcoming robotaxi announcement. Industry analysts believe this will be the most influential factor for Tesla stock in the second quarter.
Success with the robotaxi launch would likely push shares higher. Disappointment could have the opposite effect.
Coming into Friday’s trading session, Tesla stock was down about 29% year to date and 63% over the past 12 months.
The stock gained 0.8% in the week following earnings, showing modest but continued recovery.
With Friday’s premarket gains, Tesla appears poised to extend its winning streak to three consecutive weeks.
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