stock has rebounded from last week’s declines with a second consecutive strong gain on Tuesday. Shares were headed higher for a third-straight gain on Wednesday.
Tesla stock rallied 3.3% on Tuesday to close at $177.55, bringing gains this week to 5.4%. The Monday and Tuesday wins get back roughly three-quarters of the loss from the prior week when Tesla stock fell 7% from $181.19.
New tariffs might have helped. President Biden on Tuesday announced the quadrupling of import tariffs on Chinese cars to about 100% from 25%.
The 25% tariff already was significant, however, and Chinese brands aren’t for sale in the U.S.
Shares of
rose 7% on Tuesday and
shares rose 2.4%. In theory, the two Chinese electric-vehicle makers would be hurt by higher tariffs.
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and
sell Chinese-built EVs in the U.S. Those vehicles are subject to import tariffs. Still, Polestar shares finished down only 1 cent, or 0.7%. Lotus shares rose 0.5%.
Shares of U.S. auto makers
and
which benefit from more tariff protection, gained 0.9% and fell 0.3%, respectively.
The direct impact of the tariff announcement is hard to suss out. It does seem to have induced some trading volality.
Tesla shares were up 0.7% at $178.83 in premarket trading Wednesday, while
and
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futures were trading flat.
Coming into Wednesday, Tesla stock has declined 29% this year.
Write to Al Root at allen.root@dowjones.com
