Elon Musk scores again as Trump pauses tariffs, Tesla stock soars
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Elon Musk scored a big win Wednesday as President Trump paused most of the tariffs that had bludgeoned Tesla's stock and caused serious consternation in the broader market.
Why it matters: The Tesla CEO and Trump confidante had become increasingly public in his opposition to tariffs in recent days.
- He ripped Trump trade adviser Peter Navarro as a "moron" and called for "a zero-tariff situation" between Europe and North America.
Catch up quick: Trump announced he would pause reciprocal tariff hikes on all countries that haven't retaliated. He'll now negotiate what Treasury Secretary Scott Bessent called "bespoke" trade deals with each country.
- China is the exception, and will get an increase in tariffs to 125% after it retaliated with higher duties on American products.
- Baseline global tariffs of 10% will remain in place.
The impact: Tesla's stock went on a blistering rally immediately after Trump's announcement Wednesday, soaring 18% to nearly $262 per share in mid-afternoon trading.
- The stock has gained well over $100 billion in market capitalization since Tuesday, though it's still down about 31% year-to-date.
- Musk did not respond to a request for comment.
Yes, but: Musk still has a big problem: tension with China could put Tesla's business in that country at risk of retaliatory action.
- And analysts warn that his alliance with Trump has dealt a serious blow to Tesla's sales and brand image.
The other side: Navarro declared victory Wednesday after Trump paused the tariffs, describing the move as a brilliant pivot in a broader strategic ploy to extract concessions from foreign countries.
- "This is one of the greatest days in American economic history we have had," he told Fox Business. "I think we're going to call it the art of the reciprocal trade deal."
