Tesla (TSLA) stock has climbed during Wednesday’s trading session despite a lower-than-anticipated Q1 2025 earnings report posted Tuesday. Shares climbed as much as 8% on Thursday to $252 after closing Tuesday at $237.97. Most of the Magnificent Seven is in the green today, with the Dow Jones Industrial Index jumping more than 400 points at the midpoint of the day.

Tesla’s climb is especially noteworthy given its Q1 2025 earnings report just 24 hours earlier. Tesla’s first-quarter results missed Wall Street expectations across major metrics. Automotive revenue fell 20% to $14 billion, while total revenue also decreased by 9% to $19.34 billion. The US-China trade war directly impacts these numbers as Tesla faces unprecedented pricing pressure in the automotive market.

Additionally, the automotive division at Tesla would have experienced losses in Q1 if they did not received revenue from the increased regulatory credits worth $595 million. Market competition in China’s Tesla segment creates direct effects on the company’s operating margins because prices continue to decline in the market region.

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Tesla stock (TSLA) is trading higher on Wednesday thanks to a combination of macroeconomic and business-specific catalysts. Recent statements from US President Donald Trump and other White House officials suggest a desire to de-escalate the trade/tariff war. The move would benefit several top companies that are also rising on the stock market, including Tesla.

Furthermore, news that CEO Elon Musk will be stepping back from the Department of Government Efficiency (DOGE) is also helping to boost Tesla’s stock. However, even with today’s rally, the stock is still down roughly 46% from the high it hit last year.