Tesla Inc shares are trading higher on Monday as broader markets rebound amid reports suggesting tariffs could be narrower and more targeted.
Key Developments
- US President Donald Trump’s reciprocal tariffs may be more targeted than initially expected
- The Trump administration could hold off on introducing sectoral-specific tariffs and may announce that some countries will be exempt
- Tesla shares are racing higher to start the week, likely due to the swift selloff the stock has faced since the start of the year
Technical Analysis
Renowned trader and chartist Larry Williams called a bottom on Tesla stock last week, noting that smart money flowed out of the name toward the end of last year as shares surged but money has started to flow back in as the stock has given back some of its gains.
“When I look at the conditions of this stock, I see what I like to see,” Williams said, noting that it’s undervalued and a bullish cycle should be coming.
Analyst Upgrades and Price Targets
Analysts have made several bullish calls in recent weeks with Tesla shares well off their highs for the year.
- Cantor Fitzgerald analyst Andres Sheppard upgraded Tesla from Neutral to Overweight and set a price target of $425 following a visit to Tesla’s Austin Gigafactory and AI data centers
- Morgan Stanley and Wedbush also reiterated Overweight ratings on Tesla last week
- Wedbush’s Dan Ives addressed investor concerns over CEO Elon Musk’s role at the Department of Government Efficiency (DOGE), noting that Musk held an all-hands meeting with employees to reassure workers that he remains focused on Tesla
Future Outlook
Analysts see future revenue upside from FSD, Robotaxi, Energy Storage & Deployment, and Optimus Bots, to be fundamental to TSLA’s thesis over the long term.
- Ives expects Musk to take a small step back from DOGE over the coming months and increase his focus on the Tesla brand
- “Brand is key to Tesla and it’s very important to make sure the current brand crisis does not morph into a permanent black eye for the Tesla brand,” Ives said
Current Price Action
Tesla shares were up 9.69% at $272.80 at the time of publication on Monday.