The gain follows an upgrade from an analyst who says the young automaker is better positioned than its legacy competitors during the coronavirus pandemic.
Credit Suisse analyst Dan Levy, one of the more bearish analysts covering the stock, lifted his rating for Tesla stock from underperform to neutral. While his revised price target of $580 is still below where shares are trading today, his improved view for the company's competitive positioning may be encouraging to some investors.
He believes Tesla's lead in electric vehicles will be extended during this time since it "has more edge" than its competitors as electric vehicles gain market share. Legacy automakers, Levy argues, will see greater negative impact from near-term auto sales cycle disruption.
Tesla recently announced record first-quarter vehicle deliveries that were well ahead of analyst estimates for the period. In the business update, the automaker didn't lower its outlook for full-year deliveries of more than 500,000 units. But if it doesn't reopen its California factory soon, it will likely be impossible for it to hit its guidance.
Levy believes Tesla may face soft demand in Q2. In addition, he thinks it may see supply shortages if its California factory doesn't resume production in May.