Tesla (TSLA, Financial) helped spark a rally across the electric vehicle sector Wednesday after President Donald Trump announced a temporary 90-day reduction in tariffs for most U.S. trade partners. The decision lowers tariffs on imports to 10%, giving time for further trade talks and lifting market sentiment.
While the new policy excludes China — which now faces an increased U.S. tariff rate of 125% — investors appeared optimistic that negotiations between the U.S. and China could resume. A resolution would be particularly significant for EV companies, many of which rely heavily on components and supply chains linked to China.
Tesla shares jumped more than 20% on the day, recovering ground lost earlier this month. Trading volume was notably elevated following the White House announcement.
Several other EV names also gained on the news. Among them: Polestar Automotive (PSNY, Financial), Lucid Group (LCID, Financial), Rivian Automotive (RIVN, Financial), VinFast Auto (VFS, Financial), Lotus Technology (LOT, Financial), Li Auto (LI, Financial), XPeng (XPEV, Financial), NIO (NIO, Financial), and ZEEKR Intelligent (ZK, Financial) all moved higher, though most remain down for the year.
EV suppliers also saw strength. Stoneridge (SRI, Financial), REE Automotive (REE, Financial), QuantumScape (QS, Financial), and Hyliion Holdings (HYLN, Financial) were among the notable gainers. The relief rally offered a brief reprieve for a sector that has struggled in recent months under regulatory and macroeconomic pressure.
