Why Elon Musk's Tesla Share Price Soared 45% This Month? Top Reasons

Tesla Share Price: Tesla stock has seen a remarkable rebound over the past month, jumping 45% to $349.98. This comes despite a wave of negative headlines in recent weeks, including declining sales in China and Europe, brand damage from CEO Elon Musk’s political ties, and growing EV competition.

So what’s driving the sharp recovery?

Big Boost From Trade Deals

The biggest push came from positive global trade developments. A historic U.S.-UK trade deal announced by President Donald Trump and UK Prime Minister Keir Starmer gave markets a major boost. The deal opens up $5 billion in new export opportunities for American producers, particularly in agriculture and aerospace. It also creates a more secure supply chain for U.S. pharmaceutical and auto components, and ensures smoother customs procedures for American companies operating in the UK.

Prime Minister Starmer said the deal would “boost trade, protect jobs, and open market access.” President Trump called it a “great deal for both countries,” highlighting billions in increased U.S. exports and the removal of unfair non-tariff barriers.

Also Read: Donald Trump Claims India Ready To Scrap 100% Tariffs On US Goods

Adding to that, the U.S. and China also reached a temporary agreement to slash tariffs for 90 days. The U.S. cut its extra tariffs from 145% to 30%, while China dropped duties from 125% to 10%. This has calmed global trade tensions and lifted investor sentiment, particularly for multinational companies like Tesla that rely on global supply chains.

Tesla's New, Affordable Model Y

Tesla also launched a cheaper 2025 Model Y, its most affordable version since 2024. The new Rear-Wheel Drive (RWD) model starts at $44,990 — or as low as $35,490 after federal and state incentives. It offers 357 miles of range and decent performance, while the more expensive All-Wheel Drive (AWD) variant offers better handling and speed for $39,390 after incentives.

This aggressive pricing is Tesla’s response to slowing EV sales and rising competition. In Europe, EV sales have dropped in 8 of the 10 biggest markets. By offering a cheaper Model Y, Tesla is trying to hold its ground against rivals like the Hyundai Ioniq 5, Kia EV6, and Chevrolet Equinox EV — all priced below $45,000.

Importantly, since the Model Y is made in the U.S., it avoids new import tariffs that would otherwise make foreign EVs more expensive. That gives Tesla a pricing edge in its home market.

Musk's Commitments and Future Plans

Despite recent backlash over his political involvement, CEO Elon Musk reassured investors during the last earnings call. He promised to spend more time at Tesla starting this month and confirmed that a more affordable model and paid autonomous ride services in Austin, Texas, would launch by the end of June.

That clarity on future plans has helped stabilise investor confidence. Many are also betting on Tesla’s continued innovation and leadership in EV tech, even as its brand faces scrutiny.