Tesla share price gains 5% on broader US market recovery even as stock crashes 40% YTD: Elon Musk loses $4.4 billion | Stock Market News
Source: Live Mint
The dominant group of U.S. stocks known as the “Magnificent Seven” is bouncing back, helping power the broad rally on Wall Street.
Chipmaker Nvidia and Tesla are leading the pack in midday trading with a gain of 5.5% and 5.4%, respectively. Microsoft, Apple, Amazon, Meta Platforms and Google parent Alphabet are all up between 3% and 2.1%.
The solid rebound comes a day after the a mixed finish for the group.
The “Magnificent Seven” are so massive in size, their movements carry more weight on the S&P 500 and other indexes than other stocks.
Tesla stock market value has lost nearly $400 billion since the S&P 500 hit a peak on Feb. 19, a stunning 35% plunge. The index, by contrast, has fallen 17%.
Investors pushed Tesla stock to a record high after Donald Trump was elected on hopes Musk’s close ties would help the company. Instead, car buyers angry at Musk’s support for Trump and other right-wing politicians have boycotted his company.
A passing driver signals support to people protesting outside a Tesla dealership as part of a coordinated international day of “Tesla Takedown” protests, Saturday, March 29, 2025, in Miami. (AP Photo/Rebecca Blackwell)
A sharp decline Monday put Tesla’s stock at $233.29 and below its price on March 19, a key date. That is when Commerce Secretary Howard Lutnick made a surprising endorsement, urging Fox TV viewers to buy the stock in violation of a federal law banning government officials from endorsing companies.
Shares recovered somewhat in premarket trading Tuesday.
