Tesla Inc (NASDAQ:TSLA) shares are surging by more than 6% on Wednesday. Despite the strong move, the EV stock is still down more than 35% year-to-date and nearly 25% in just the last month.
On Tuesday, Daiwa Capital maintained Tesla with an Outperform rating, but lowered the price target from $1,150 to $800, citing supply chain headwinds and lockdowns in China.
Several analysts have lowered price targets on Tesla this month, highlighting similar concerns. Tesla's Giga Shanghai was shut down for three weeks in April following a surge in COVID-19 cases.
Wedbush analyst Dan Ives lowered his price target on the stock from $1,400 to $1,000 last week to reflect new delivery estimates as a result of the shutdown. The longtime Tesla bull called the shutdowns an "epic disaster" for Tesla.
Related Link: What Does The Recent String Of Tesla Price Target Cuts Suggest?
Tesla CEO Elon Musk has also been in talks to buy social media platform Twitter Inc (NYSE:TWTR). Although the potential acquisition doesn't impact Tesla's fundamentals, according to Ives, the distraction risks are hard to ignore.
Wednesday's move is likely a relief rally following sharp declines over the last month. The technical trend remains lower on bearish momentum.
See Also: You Ask, We Analyze: Is There A Bull Case For Tesla Stock?
TSLA Price Action: Tesla has traded between $571.22 and $1,243.49 over a 52-week period.
The stock was up 6.08% at $666.34 at press time.
Photo: courtesy of Tesla.
