Tesla’s Market Value Soars Over 540 Billion Yuan as Trump Tariff Delay and US Stocks Rebound Boost Investor Confidence

US stocks surged across the board on Tuesday as former President Trump announced a delay in tariff hikes on European goods, paired with a strong rebound in the US consumer confidence index, bolstering investor risk appetite. Tesla’s market cap alone jumped by more than 540 billion yuan (about $75.9 billion) overnight, with technology stocks broadly advancing while Chinese concept stocks showed mixed performance. Meanwhile, updates such as Rocket Pharma’s gene therapy trial being halted by the FDA, Meta’s AI team restructuring, and Apple’s plans to launch a dedicated gaming app also captured market attention.

On Tuesday (US Eastern Time), all three major US stock indices closed higher. Trump’s decision to postpone tariffs on EU goods, along with a sharp rebound in May’s US consumer confidence index, lifted investor sentiment.

Trump wrote on social media that he extended the tariff deadline at the request of European Commission President Ursula von der Leyen. The EU’s chief trade negotiator also said he had “positive discussions” with the Trump administration and is committed to reaching a trade deal before the July 9 deadline.

Market strategist Paul Nolte noted that Trump’s tough talk in early April had triggered panic selling, but markets quickly bounced back. Nolte compared Trump to a poker player—one who bets aggressively but folds when opponents push back.

Economic data highlight:
The Conference Board reported on Tuesday that the US consumer confidence index surged to 98 in May, far above the expected 87 and marking the largest monthly gain since March 2021. Richmond Fed President Barkin said there is no evidence that uncertainty is impacting consumer spending, in line with the Fed’s view to keep key rates steady for now.

Market performance:

• Dow Jones up 1.78% to 42,343.65
• Nasdaq up 2.47% to 19,199.16
• S&P 500 up 2.05% to 5,921.54

Global airline, semiconductor, consumer discretionary, and tech sector ETFs led the gains, with the S&P 500’s consumer discretionary, tech, and telecom sectors seeing the largest advances.

Big tech rally:

• Nvidia up 3.21%, Alphabet Class A up 2.63%
• Apple and Amazon up over 2.5%, Meta up 2.43%, Microsoft up 2.33%
• Tesla soared nearly 7%, adding $75.9 billion (approx. 540 billion yuan) to its market value overnight. Musk posted on X that he’s back to “24/7, 7-days-a-week work mode,” signaling his full commitment to Tesla.

Other notable stock movements:

• Trump Media & Technology Group fell over 10% after announcing it had secured $2.5 billion in funding through agreements with 50 institutional investors, planning to build a Bitcoin reserve fund.
• Pinduoduo plunged over 13% as Q1 revenue grew 10% but adjusted net profit fell 45%, well below expectations.

Mixed performance among Chinese concept stocks:

• Bilibili up over 2%, Zhihu, New Oriental, and iQIYI up over 1%
• Li Auto and JD down over 2%, Xpeng and NIO down over 3%

Company news highlights:

• Rocket Pharma: Its phase 2 gene therapy trial for Danon disease was halted by the FDA after a patient died from serious complications, causing the stock to plunge over 60%.
• Texas legislation: Texas Governor Abbott signed a law requiring Apple and Google’s app stores to implement age verification, with another bill to restrict social media use for those under 18 awaiting a Senate vote.
• Apple: Plans to launch a dedicated gaming app later this year, integrating achievements, leaderboards, Arcade subscriptions, and more.
• Meta: Announced a restructuring of its AI team to accelerate product launches, creating separate product-focused and core AI infrastructure divisions.