Tesla’s stock soared 20% on Tuesday, bouncing back from a deep selloff and on track for the biggest one-day rise in nearly eight years after statistics suggest a spike in China revenue and an analyst lifted his ranking on the electric car manufacturer.
The boost, which lifted Tesla’s enterprise value by more than $100 billion, would bring an end to a five-day losing streak for the firm amid a Nasdaq recession in which investors fearful of increasing inflation have shunned growth stocks with high valuations.
New Street Research analyst Pierre Ferragu upgraded Tesla from “neutral” to “buy” and increased his fair value to $900 from $578.
Tesla’s share was the last trading at $669, on track for its best single-day showing since May 2013. The stock is now down more than 20% from its own all-time peak in January.
“As much as the market seriously corrected the previous excesses of optimism embodied in Tesla’s valuation,” Ferragu wrote in a client note, “our latest research improved our trust regarding the company’s strong prospects in the next 2 years,” he continued
According to the Chinese car industry group CPCA, Tesla sold 18,318 China-made automobiles in February, up from 15,484 in January.
Tesla’s portfolio has risen by around 70% in the last six months, despite recent market uncertainty. According to Refinitiv, thirteen analysts have given Tesla a neutral ranking, while 12 encouraged purchasing and ten supported selling.
Tuesday’s Tesla rebound coincided with a 4.2 percent gain in the Nasdaq, as bond rates in the United States fell and buyers piled into battered technology companies. Tesla has been the largest beneficiary to Tuesday’s 2.1 percent rise in the S&P 500 that it entered in December.