US stock market today saw mixed action as the Dow Jones dropped while the S&P 500 and Nasdaq inched higher, driven by strong Alphabet earnings and cautious outlook from Tesla. Alphabet jumped over 3% after boosting its AI investment,

Tesla's market cap fell below $1 trillion, but it still reflects investors' assumptions of enormous future growth.

Stocks found support from afternoon news reports that the U.S. and the EU are working toward a deal that would set a 15% tariff on most imports. Earlier, Bloomberg reported that the EU may hit U.S. goods with a 30% levy if no agreement is reached before an Aug. 1 deadline set by President Donald Trump.

Investors held onto hopes that the U.S. and Japan’s trade agreement could lead to a tariff breakthrough with other countries, and pushed the S&P 500 and Nasdaq Composite to fresh record highs.

Tesla's valuation gains today follow a bigger sell-off in yesterday's trading that was spurred by disappointing second-quarter results and comments from management suggesting that performance headwinds could continue in the near term. The company's share price has seen some big swings in 2025, and is down roughly 21% year to date with today's pop.

At the risk of sounding like investing guru Cathie Wood, Tesla (NASDAQ:TSLA) has a clear path to be a $20 trillion stock. The pioneer in electric vehicles (EVs) and sustainable energy has transformed the automotive industry since its founding 22 years ago,

Tesla is scheduled to report its second-quarter results after the market closes on Wednesday, with investors expecting the electric vehicle maker's stock could make a sizable move.

Yang mentioned that Nvidia trades at a lower price per share than Tesla. However, that doesn't mean Tesla is worth more than Nvidia. He told his audience to look at a stock's market cap to determine the company's value. Nvidia's market cap exceeds $4 trillion, while Tesla only has a $1 trillion market cap.

Tesla (NASDAQ: TSLA) reported quarterly financial results that disappointed stock market investors. *Stock prices used were the afternoon prices of July 23, 2025. The video was published on July 25, 2025.