Electric vehicle and battery manufacturer Tesla had a banner day on the stock market on Monday, as its share price soared by nearly 7% after a pause in the United States’ trade war with China.
According to Yahoo Finance, Tesla stocks experienced a significant surge on Monday morning when the markets opened, jumping 6.7% after the United States and China agreed to a 90-day pause on their dueling tariffs between the two countries.
While the news of a pause to the trade hostility is good news for the vast majority of businesses, tech companies like Tesla stand to gain the most.
China has the fastest-growing solar and wind energy market in the world, and this move allows Tesla to continue to capitalize on that growth, selling the country its PowerWall battery and energy storage systems. China also has one of the fastest-growing EV markets in the world, and with Tesla’s sales flagging in Europe, losing a market like China because of tariffs would have been a devastating blow.
The pause is a win going the other direction as well. China controls a significant portion of the world’s rare Earth metals, like lithium, which are essential for batteries and other technology that Tesla uses in its vehicles. The tariff war raised the prices on those goods exponentially, making it incredibly difficult for Tesla and other technology companies to turn a profit without passing those cost increases on to consumers.
The bump comes at a tumultuous time for the EV company. Tesla is facing multiple lawsuits on a variety of issues, including allegations of odometers giving false readings to allow the company to turn down warranty claims and issues with safety score metrics that led to increased insurance premiums. The company has also seen states moving to tax the revenue it derives from selling EV credits to other automakers, one of its largest annual income sources.
Owning an EV is a great way to reduce your carbon impact, and pairing EV ownership with the purchase of solar panels can make that impact go even further, while also increasing your savings. Fueling using solar panels is cheaper than relying on your local power grid or public charging stations.
If you want to make the switch, EnergySage has a free service that can help you get quotes from vetted local installers, which can help save you up to $10,000 on installing your panels.
Fortunately for Tesla, the pause on tariffs will allow the company to stay competitive in the EV market in China, and its stock price reaps the benefits.
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