Most plants that have been recently transplanted undergo some stress, and the magnolia tree is no exception. When a tree or shrub has been recently planted, sometimes the leaves of the plant will turn yellow from the stress. The yellow leaves should be temporary once the magnolia tree acclimates to the soil it has been placed in.
Both too much and too little water for a newly planted magnolia can cause leaves to turn yellow. When too much water is used, the roots of the plant can become choked and are unable to utilize nutrients in the soil. When a magnolia tree becomes dehydrated, the leaves will also turn yellow, but then brown and eventually fall off. The process of leaf death when a tree does not have enough water can occur very fast.
If the leaves of a newly transplanted magnolia turn yellow and remain yellow, this could be indicative of chlorosis. This is when leaves of a plant turn yellow due to a lack of chlorophyll. Plants require sufficient nutrients and sunlight to produce chlorophyll. Roots may be damaged from a recent transplant or choked from too much water and be unable to obtain nutrients from the soil.
Although magnolias are a highly adaptable tree and shrub, once they have begun to bloom in the spring the leaves and flowers are susceptible to cold temperatures. If nighttime temperatures have been unexpectedly cold, the leaves of the magnolia may turn yellow. Temperatures that are too cold for too many nights may cause the leaves to turn yellow, then brown and eventually fall off.