Tesla (TSLA, Financial) rockets past a $1 trillion market cap as easing U.S.–China trade tensions and a risk-on rally lift shares more than 5% in regular trade.

Tesla opened Monday up over 5%, powered by over a 2.5% jump in the S&P 500 on optimism that tariff reductions will unclog global supply chains for automakers and semiconductor suppliers alike. That surge pushed Tesla's market value above the $1 trillion threshold for the first time, cementing its status alongside Apple, Microsoft and other mega-caps.

The stock had been under pressure in recent months as steep duties on Chinese-sourced components threatened to derail production economics for Tesla's Cybercab sedan and Semi truck. With duties now set to fall dramatically—alleviating raw-material and parts costs—investors are betting Tesla can restore margin on its near-term EV rollout. Tesla's reliance on parts from China, Mexico and Canada means any tariff thaw directly eases manufacturing headwinds.

Meanwhile, CEO Elon Musk's invitation to this week's Saudi-U.S. investment forum in Riyadh highlights Tesla's global expansion push, following a recent Middle East launch event that showcased its bestselling EV lineup to an oil-rich audience eager for renewable solutions.

Why it matters: Hitting the $1 trillion mark underscores Tesla's resilience amid trade volatility and signals renewed investor confidence in its EV growth trajectory.