Tesla stock rises 3% after upgrade recommendation

Tesla's stock saw a rise of about 3% during pre-market trading on Wednesday. This increase followed a recommendation from analyst Andres Sheppard of Cantor Fitzgerald. Sheppard upgraded Tesla’s rating from "neutral" to "overweight," suggesting it is a good time to buy shares. Sheppard highlighted that recent stock declines provide an attractive entry point for investors. He mentioned several upcoming developments that could positively affect Tesla's stock. These include the rollout of its full self-driving feature in China and Europe, the launch of a robotaxi service, and a new vehicle model set to be released later this year. Additionally, Tesla plans to start robot production and sales in 2026. The stock rise comes as Tesla faces challenges. The company's stock fell 5.3% on Tuesday and is down 36% in the past month. This decline has significantly decreased CEO Elon Musk’s net worth, which is largely tied to Tesla shares. Despite these issues, Tesla received good news from California regulators this week. They granted a permit for Tesla to operate a ride-hailing service, which is an important step toward its goal of developing a fleet of autonomous robotaxis.