Tesla stock continued to recover for the second straight session on Wednesday.
The TSLA stock shot up over 5% on Wednesday morning.
The stock’s rise coincides with a broader market rebound.
The S&P 500 rose 0.5% on Wednesday, as investors attempted to gauge a market bottom following several volatile sessions, despite fresh retaliatory tariffs from China and the European Union on US goods.
The Nasdaq Composite gained 1.2%, while the Dow Jones Industrial Average edged up 63 points, or 0.2%.
The electric vehicle maker’s shares have been under significant pressure since President Donald Trump’s announcement of higher-than-expected tariffs, despite Tesla’s relatively limited exposure to the policy compared with some traditional automakers.
By mid-morning, Tesla shares were trading at $230.65, up around 4%.
The TSLA stock has hit an intraday high of around $235 earlier in the day.
The S&P 500 and Dow Jones Industrial Average also gained ground, rising 2.8% and 2.6%, respectively.
Prior to this recent recovery that started Tuesday, Tesla stock had declined 17.5% over the previous three sessions.
Analysts bullish on Tesla
Benchmark added Tesla to its “Best Ideas” list on Wednesday, stating that the stock’s recent sell-off and declining sales appear overdone given the company’s near-term catalysts and long-term growth prospects.
While the firm maintained its Buy rating, it revised its price target downward from $475 to $350 to account for the shift in market sentiment following recent tariff announcements.
The revised target still indicates an over 50% upside from the stock’s current market price of around $230.
Tesla shares have fallen sharply from a post-election peak above $480 to the low $200s.
Analyst Mickey Legg views the current valuation as a buying opportunity.
“We believe the recent stock pullback and sales declines, while significant, are overblown considering the near-term issues impacting the company and the scope of opportunities around the corner,” Legg wrote.
Among those opportunities is a new vehicle release expected in the second quarter, which Benchmark believes could serve as a key inflection point for deliveries.
Legg is also “cautiously optimistic” about the launch of Tesla-operated robotaxis in Austin, Texas, scheduled for June.
While the rollout will be limited initially, Benchmark will monitor how quickly Tesla expands the service.
Legg added that Tesla’s domestic production base in California and Texas limits its exposure to newly imposed US auto tariffs, giving it a relative advantage over peers.
Earlier on Tuesday, Morgan Stanley also shared bullish views on the Elon Musk-led company.
Morgan Stanley analyst Adam Jonas reiterated Tesla as a “Top Pick”, maintaining an Overweight rating and a $410 price target.
In a note to clients, Jonas highlighted that Tesla’s long-term value proposition extends far beyond electric vehicles, a segment he said is facing mounting competitive and regulatory pressures.
He emphasized the company’s broader innovation pipeline and technological edge as key drivers of its investment case.
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