Tesla's stock recently experienced a notable increase, rising 4.7% on May 9, 2025. This marks a third week of positive performance for the electric vehicle giant, driven by favorable developments in U.S.-China trade discussions. These talks have played a significant role in boosting investor confidence in the market, particularly benefiting companies with a strong presence in China, like Tesla.

According to Kiplinger, analyst Dan Ives from Wedbush highlighted that the reduction in trade tensions between the United States and China has been a key factor positively influencing Tesla's stock performance. This comes as officials from both countries engage in crucial negotiations in Geneva. Furthermore, the market has also been buoyed by a new trade agreement between the U.S. and U.K., which has further enhanced overall market sentiment.

Additionally, the underlying market strength is evidenced by 21 consecutive weeks of net inflows from retail investors, reflecting sustained confidence despite some ongoing uncertainties. With Tesla's stock currently priced at $297.75 and having shown resilience through recent activities, investors are closely monitoring these developments and viewing them as potential buy points influenced by the easing trade tensions.