Tesla Shares Up 8% After a Period of Heavy Selling

Shares of Tesla (NASDAQ:TSLA) saw an 8% share price increase yesterday after a period of heavy selling as analysts continue to encourage their clients to buy shares while they are down. Morgan Stanley analyst Adam Jonas, a known Tesla supporter, reaffirmed his Overweight rating on the stock and lowered the price target from $330 to $250 per share.

Jonas stated in a note to clients that he believes Tesla is in a position to widen its lead over other electric vehicle (EV) competitors in the coming fiscal year, and could potentially benefit from the Inflation Reduction Act. Jonas also reiterated his previous prediction that 2023 will be a "reset" year for the EV market as supply is expected to surpass demand.

He believes that companies that are financially stable and have a track record of cost efficiency throughout their operations will perform well in this environment. Jonas sees the current dip in Tesla's stock price as an attractive buying opportunity.