After a series of sharp declines, Tesla’s stock rebounded, rising more than 2% for the first time in recent memory.
On Wednesday, Tesla shares climbed 2.44% to close at $336.51 on the New York Stock Exchange, boosting the company’s market capitalization to $1.08 trillion.
Despite the gain, Tesla remained in 8th place in market cap rankings, having slipped from 7th the previous day after a steep drop.
While no major Tesla-related news emerged that day, the 2% jump was likely driven by bargain hunters stepping in after the selloff.
On the political front, several developments favored Tesla. President Donald Trump publicly backed Elon Musk.
A day earlier, Trump signed an executive order expanding the powers of the Department of Government Efficiency (DOGE), led by Musk.
Under the new directive, federal agencies must consult and coordinate with DOGE on workforce reduction matters.
Although this high-level move may not immediately impact Tesla’s bottom line, investors view Trump’s and Musk’s close relationship as a potential long-term advantage.
Meanwhile, a congressional push to tax electric vehicles appeared to boost Tesla’s stock unexpectedly.
Republican senators proposed a $1,000 tax per electric vehicle to fund road repairs.
While the levy could pose short-term challenges for Tesla, industry analysts believe it may hurt its competitors more, potentially strengthening Tesla’s market position in the long run.