Tesla Stock Drops After Soaring 23% Amid Trump Tariff Hope. These Problems Remain
Tesla stock was falling in early trading Thursday after an epic gain on Wednesday.Investors were relieved that President Donald Trump paused the implementation of some of his import tariffs for 90 days. There is a problem, though. Not much has changed for the car industry.Shares of the electric-vehicle maker were up 2.9% in premarket trading at $264.29, while S&P 500 and Dow Jones Industrial Average futures were down 1.6% and 1.2%, respectively.Thursday's move comes after Tesla's 22.7% Wednesday gain. It was the second-best daily gain for the stock ever after May 9, 2013, when shares rose 24.4% after the company reported its first-ever quarterly profit. It was also a sharp reversal from the past week -- coming into Wednesday trading, Tesla stock dove more than 20% since Trump announced widespread tariffs on April 2.Most stocks, including shares of Tesla and other auto makers, were plagued by fears that the tariffs would lead to slower economic growth, higher costs, weaker profits, and