Tesla Stock Surges 10% as Tariff Optimism and Retail Investors Drive Recovery

Elon Musk urges employees to hold their shares while reports suggest potential tariff exclusions could benefit the EV maker.

Tesla shares rose by approximately 10% on Monday, marking the company's largest one-day percentage gain since November 2024.
The stock rally was fueled by optimism over potential tariff exclusions under the Trump administration and increased retail investor activity.
CEO Elon Musk encouraged employees to retain their stock during a recent all-hands meeting, citing Tesla's long-term potential in self-driving technology and robotics.
Retail investors played a significant role, with Tesla becoming the most actively traded stock on Monday, showing a strong buy-to-sell ratio.
Despite the rebound, Tesla's stock remains down nearly 40% in 2025 due to declining sales, rising competition, and backlash over Musk's political role.