December 6, 2022

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What’s Driving Tesla Shares Higher On Wednesday

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Tesla Inc. TSLA shares were advancing for a straight session in premarket trading on Wednesday.

What Happened: Ahead of Tuesdays session, the stock had dropped to a three-year low, which wiped out about half a trillion off its market capitalization.

The upside seen in the premarket session may be traced back to positive analyst commentary on the stock. Late Wednesday, Morgan Stanley analyst Adam Jonas said he will continue to own Tesla stock as it offers 100% upside potential from the current levels.

See Also: How To Invest In Tesla (TSLA) Stock

Jonas noted that Tesla is the only pure play electric vehicle maker in his coverage universe that generated a profit and positive free cash flow.

On Wednesday, longtime Tesla bear Citigroup raised its investment rating on the stock to Neutral from Sell and raised the price target from $141.33 to $176, Yahoo Finance reported.

Analyst Itay Michaeli predicated the action on the year-to-date pullback that has balanced out near-term risk/reward. The analyst moved to a Sell rating on Tesla in September 2018 and had maintained the rating since then.

Price Action: In premarket trading on Wednesday, Tesla rose 1.63% to $172.68, according to Benzinga Pro data.