Trump, Tesla Earnings & Crypto: Tuesday's Market Movers

On Tuesday, 22 April, U.S. President Donald Trump’s latest policy moves played a large part in determining the direction of market trends over the course of the trading day. Let’s take a closer look at Trumponomics’ latest turns and how they’re influencing sentiment well into 2025:

Is Trump Lowering the Heat?

On 22 April, markets responded notably to a flurry of comments and policy signals from President Trump, highlighting his outsized influence on investor sentiment and financial direction. His dual focus on monetary policy and trade relations stirred uncertainty, while also offering glimpses of potential de-escalation — a combination that left markets jittery but cautiously optimistic.

At the centre of monetary policy tension is Federal Reserve Chair Jerome Powell. Despite Trump’s earlier fierce criticisms — including calling Powell a “major loser” and suggesting he could be removed from his position — the president walked back these threats, stating publicly yesterday that he has “no intention of firing” the Fed chief. This marked a softening in tone following days of heightened rhetoric in which Trump lambasted Powell for not cutting interest rates fast enough, fuelling concerns about Fed independence. Although Powell has maintained that he intends to serve through his term ending in 2026, such political pressure introduces volatility, especially given a pending Supreme Court case that could test the executive branch's authority over independent governmental agencies.

Meanwhile, Trump’s stance on China tariffs also evolved on the same day, impacting markets. Speaking on Tuesday, he acknowledged that the headline 145% tariffs on Chinese goods “won’t be that high” in the long term and would “come down substantially.” This hint at de-escalation, alongside comments from Treasury Secretary Scott Bessent describing the current trade standoff as “unsustainable,” encouraged a rebound among major indices, with the S&P 500 and Dow Jones Industrial Average both rising more than 2.5% by the ring of the closing bell. Bessent’s private assurance to investors of greater “clarity” ahead likely helped ease fears of prolonged economic strain from aggressive trade measures, although the question of whether Tuesday’s gains will continue throughout the week remains open. (Source: Yahoo Finance)

Crypto Stands Strong

Crypto traders pushed the value of major digital coins upwards in the wake of the latest presidential policy turnaround. Bitcoin (BTCUSD) climbed to over $93,000 (on Tuesday), while Solana (SOLUSD) surged by nearly 9% despite ongoing uncertainty around the defunct FTX exchange and the unlocking of billions in SOL tokens. This crypto rally was particularly notable given its timing, unfolding just as political tensions and tariff risks might have otherwise dampened investor appetite. Analysts credit this strength to growing institutional adoption, innovations within blockchain networks, and a broader appetite for decentralised assets in the face of fiscal and geopolitical unpredictability. As traditional markets wavered, digital assets appeared to find renewed footing, suggesting a growing divergence in how different asset classes are responding to political risk.

Together, these latest developments framed 22 April as a day of recalibration. Trump’s remarks injected short-term volatility but also opened the door to more dovish monetary policy and a softer trade posture — both of which markets typically favour. Nonetheless, the mixed messaging and ongoing unpredictability in policy direction underscore the extent to which Trump’s personal statements continue to drive market momentum, especially in politically sensitive sectors like interest rates and international trade.

Tesla Earnings Underwhelm

Following President Trump’s market-shifting comments on trade policy and interest rates, Tesla (TSLA), with presidential ally Elon Musk at the helm, added another layer of volatility to the economic narrative yesterday. Trump’s ongoing tariff war, particularly on foreign automakers, has reportedly played directly into Tesla’s earnings disappointment — an outcome that underscores how political and economic decisions are increasingly shaping corporate performance.

Tesla’s Q1 earnings, reported after market close, missed expectations by a wide margin, with revenue falling to $19.34 billion versus the $21.43 billion analysts had forecast. Deliveries came in significantly below estimates, marking the weakest quarter since Q2 2022. Blame for the miss was swiftly attributed to trade tensions and supply chain disruptions, both amplified by Trump’s tariff policies. The EV giant specifically cited "rapidly evolving trade policy" and "changing political sentiment" as headwinds, adding that these factors were negatively impacting demand and forcing the company to rethink its 2025 guidance.

Despite the underwhelming financials, Tesla shares surged over 5% in after-hours trading, largely driven by Elon Musk’s announcement that he will reduce his political involvement and devote more time to Tesla. Musk said he will cut back his time at the Department of Government Efficiency (DOGE) beginning next month, reassuring investors who may have grown concerned about his political entanglements and the public backlash they’ve generated.

Musk also said he advised Trump that lower tariffs would be beneficial — a notable comment considering the ongoing impact of Trump’s 25% auto tariffs on Tesla’s pricing strategy and competitiveness, particularly against Chinese rival BYD (1211.HK). Meanwhile, political protests and brand damage linked to Musk’s affiliations have further complicated Tesla’s position, particularly across the European Union.

Conclusion

In sum, 22 April highlighted how Trump and Musk continue to exert significant influence on market direction, policy interpretation, and corporate performance, with Tesla standing at the centre of this intersection. How the American president's controversial economic policies will ultimately play out is unclear at the moment, but it seems likely that Trumponomics will continue to play a key role in defining market sentiment as we move further into 2025.

*Past performance does not reflect future results.