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Investors are betting on Tesla’s brighter future as a surprise agreement to slash U.S.-China tariffs could boost the EV maker’s sales and reduce supply chain costs.

Advertising Disclosure: When you buy something by clicking links within this article, we may earn a small commission, but it never affects the products or services we recommend. Tesla shares jumped nearly 7% on Monday following a surprise announcement that the United States and China have agreed to dramatically reduce reciprocal tariffs to 10% for a 90-day negotiation period.