TLDR
- Tesla stock surged 11.9% on March 24, 2025, attempting to break a nine-week losing streak
- Reports indicate Tesla is preparing to launch Full Self-Driving (FSD) in China pending regulatory approval
- Tesla stock had declined 42% over nine consecutive weekly losses prior to the jump
- President Trump may exclude some countries from reciprocal tariffs, easing pressure on automakers
- CEO Elon Musk recently addressed employees, emphasizing the company’s future in self-driving and robotics
Tesla’s stock jumped nearly 12% on Monday, March 24, 2025, ending the day at $278.39. The significant one-day gain comes as the electric vehicle maker attempts to break a record nine-week losing streak that saw the stock drop 42%.
Multiple factors contributed to the surge. The broader market also performed well, with the S&P 500 gaining 1.8% and the Dow Jones Industrial Average rising 1.4%.
Reports from China provided the most direct catalyst for the stock’s movement. Tesla announced on its Weibo account that it will launch its Full Self-Driving (FSD) technology in China once it receives regulatory approval for over-the-air software updates.
This news comes at a critical time for Tesla. The company has struggled with declining sales across key markets in recent months.
China has been particularly challenging. According to the China Passenger Car Association, Tesla’s wholesale sales, including exports and retail sales, dropped 49% year-over-year in February.
Tesla sold just 30,688 new energy vehicles in China last month. This represents the lowest sales figure in over two years. By comparison, Chinese EV competitor BYD sold 318,233 vehicles during the same period.
Europe has been equally problematic. Tesla’s January sales in the region fell 45% while the overall industry saw a 37% increase. In Germany, February sales collapsed 76% to only 1,429 cars, despite a 31% increase in overall electric vehicle registrations.
The U.S. market hasn’t been immune to Tesla’s challenges. The company experienced a 1% sales decline in 2024, its first annual drop in over a decade. Fourth-quarter unit sales increased by only 2.3%, while the broader EV market grew by 15%.
Political Factors
Political considerations have also affected Tesla’s stock performance. Initially, shares benefited from Donald Trump’s election victory in November 2024, rising from $250 to approximately $490 by mid-December.
Investors anticipated that the Trump administration would implement regulations favorable to the introduction of self-driving vehicles. This would align with Tesla’s plans to launch a robo-taxi service in 2025.
However, since January’s inauguration, Tesla’s stock has faced headwinds. Elon Musk’s political activities have reportedly alienated some of Tesla’s traditional customer base—environmentally conscious consumers who often lean politically left.
Tesla facilities have experienced protests, some resulting in property damage. On Monday, the FBI announced the creation of a task force to investigate these incidents.
Recent comments from President Trump also contributed to Monday’s stock rally. The market had been concerned about potential wide-ranging tariffs that could pressure the U.S. economy and EV sales.
Reports now suggest the White House may exclude some countries from reciprocal tariffs set to begin April 2. There are also indications that Trump is considering avoiding sector-specific tariffs on automobiles.
Corporate Response
On Friday, March 21, Musk met with Tesla employees. This meeting appeared to reassure investors concerned about his divided attention between Tesla and his role in Washington as part of the Department of Government Efficiency (DOGE).
“Investors roundly cheered Elon’s vision, confidence, spirit, and calmness in praising employees for other efforts during the current media story,” said Future Fund Active exchange-traded fund co-founder Gary Black.
Wedbush analyst Dan Ives described the speech as “a major step forward,” adding that “many showrooms” in the U.S. appear to have new Tesla buyers.
Despite Monday’s gains, Tesla stock remains down about 36% since the January 20 presidential inauguration. The stock is roughly flat since the November election.
Investors will closely watch upcoming sales data for signs of recovery. The European Automobile Manufacturers’ Association is expected to release monthly sales data later this week.
Tesla will report its first-quarter sales results on April 2. Wall Street analysts initially projected first-quarter sales of 414,000 vehicles. However, more recent estimates have been revised downward to around 360,000 units.
For perspective, Tesla delivered 387,000 vehicles in the first quarter of 2024. The company’s ability to meet or exceed these revised expectations will likely determine whether Monday’s stock rally represents a turning point or merely a temporary reprieve.
Another key metric will be Chinese consumers’ willingness to pay for FSD technology. Unlike Tesla, which charges several thousand dollars for its driver-assistance features, Chinese competitor BYD essentially includes similar features at no additional cost.
The impact of FSD availability on Tesla’s Chinese market share will be closely monitored by investors looking for signs of the company’s competitive resilience in the world’s largest EV market.
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