Tesla shares went up by 5% on a Friday when President Donald Trump said he would bring down tariffs on Chinese goods from 145% to 80%. Trade talks America would have with Switzerland have given a glimmer of hope to investors. This demonstrates the thawing trade relations between the United States and China, which bodes well for the likes of Tesla, who do a lot of business in the Asian giant. Investors were happy with the news, as it sent prices for Tesla soaring to $299.02 a share.

Trump also provided an outline for an extensive trade deal with the UK, which is now the first significant deal his administration has delivered. This, however, is more as an initiative for improving global trade relations. At 9:47 AM ET, Tesla shares were up by 4.99 percent, an observable reaction the market made to the events mentioned above. 

It reflects the confidence investors have in Tesla and other corporations whose performance is significantly linked to China since such improvements in trade relations can have a great impact on their growth prospects.

Tesla’s Current Stock Status:

  • Stock rise: 5%
  • Price per share: $299.02
  • Time of increase: 9:47 AM ET

For Tesla this news turns out to be particularly productive because of the lower tariffs as well as the increasing footprint of Tesla in China with the Shanghai Gigafactory. China remains one of the major markets for electric vehicles produced by Tesla; lower tariffs will hence mean lower production costs and lead to cheaper Tesla cars, thus making them more competitive in that region. It is also indicative of a larger strength flow of optimism about the market as most investors feel such lessening of trade tensions will also benefit other companies that have close ties to China.