Shares of Tesla (NASDAQ:TSLA) surged on Tuesday, as the electric vehicle maker's stock price rebounded sharply from its recent lows.
As of 11:25 a.m. EST, Tesla's stock was up more than 12%.
Following positive developments on the COVID-19 vaccine front, investors have rotated out of high-priced growth stocks that have performed well during the coronavirus crisis and into more bargain-priced stocks that could benefit from a post-pandemic economic recovery. Tesla was caught up in this rotation. After climbing to a record high of $900.40 on Jan. 25, Tesla lost more than a third of its value by March 8.
Some forward-thinking investors, however, believe the sell-off was overdone. For one, Ark Investment Management founder and CEO Cathie Wood, who oversees the popular ARK Innovation ETF (NYSEMKT:ARKK), has used the downturn to scoop up more Tesla shares at a significant discount to their recent highs.
New Street analyst Pierre Ferragu also thinks now is a good time to buy Tesla's shares. He raised his rating on Tesla's stock from neutral to buy on Tuesday. Ferragu sees Tesla's stock price climbing to $900 as it ramps up its manufacturing capacity and quadruples deliveries of its popular electric vehicles over the next three years.
Wedbush analyst Daniel Ives, meanwhile, said today that he believes Tesla's stock price could reach as high as $950. Ives highlighted the EV leader's strong sales in China, which rose 18% sequentially in February to 18,318 vehicles. His price target represents potential gains to investors of roughly 50% from Tesla's current share price near $630.