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Finally, some good news for Tesla (TSLA+5.27%).
The EV maker’s stock popped during pre-market trading on Wednesday after a Wall Street analyst recommended buying the company’s recent stock dip.
Shares rose about 3% in early trading after Cantor Fitzgerald analyst Andres Sheppard upgraded Tesla from “neutral” (hold) to “overweight” (buy).
Sheppard wrote that “the recent selloff represents an attractive entry point for investors,” Barron’s reported.
Sheppard pointed to several upcoming milestones that could drive Tesla’s stock the coming months. These milestones include the company’s planned rollout of its full self-driving (FSD) feature in China this quarter and in Europe in the first half of 2025; the launch of a robotaxi service in the second half of 2025; the release of a new vehicle model later that year; and the start of robot production and sales in 2026.
It’s worth noting that Cantor Fitzgerald was led for decades by Howard Lutnick, until he was named Commerce Secretary by President Donald Trump this year. Trump also appointed Tesla CEO Elon Musk to lead the newly created Department of Government Efficiency (DOGE). In recent weeks, Trump has publicly supported Musk, including by purchasing and showcasing a Tesla at the White House. But many investors blame Musk’s close ties to the president for Tesla’s recent struggles.
Tesla stock fell 5.3% Tuesday and has plunged 36% over the past month — and by more than half from its all-time high in mid-December. This has wiped billion of dollars from Musk’s net worth, about 60% of which is tied to Tesla shares and options.
Still, Tesla received another piece of good news this week. On Tuesday, California regulators granted the company a permit to operate a ride-hailing service in the state, a key step in its push to develop a fleet of autonomous robotaxis.