Tesla (NASDAQ:TSLA) shares rose 5% in early trade Wednesday, its second consecutive day of gains. The renewed investor interest in the electric vehicle maker, coming after a 40% correction in the stock, got further impetus from New Street Research analyst Pierre Ferragu’s 'buy' rating on the stock Tuesday.
Ferragu’s $900 price target was around 50% higher than Monday's closing price and sent Tesla soaring about 19% on Tuesday. The stock currently trades around $688.
Tesla’s spectacular run that began in 2020 was abruptly halted last month with its announcement that it had invested $1.5 billion in Bitcoin. Investors weren’t amused and dumped the company’s stock, just as they did with the cryptocurrency. Bitcoin has touched new lifetime highs since.
Other positive news also added to the favorable sentiment for Tesla shares. Business newspaper Globes has reported that the company will this month deliver the first Tesla 3 cars to Israeli customers, though just 120 initially.
Concerns over reports of hacking at its China factory were also short-lived. The company, founded by Elon Musk, said the incident, reported on Tuesday, was restricted to a supplier's production site in the country’s Henan province and that its Shanghai factory and showrooms were unaffected.
A small group of hackers earlier this week viewed live and archived surveillance footage from hundreds of businesses by gaining administrative access to cameras supplied by Verkada, one of the hackers told Reuters on Tuesday.
Verkada acknowledged an intrusion, saying it had disabled all internal administrator accounts to prevent unauthorized access.