Shares of Tesla (NASDAQ:TSLA) fell hard on Thursday and are 40% lower over the last six weeks as the recent negative vibe on the EV stock continued. On a market cap basis, Tesla is still bigger than Toyota (NYSE:TM) , General Motors (NYSE:GM) and Ford (NYSE:F) combined following the moonshot run in 2020-2021 that padded valuation.
Despite the recent caution in the air, a new bull showed up on Tesla with Edward Jones upgrading the EV giant to a Buy rating from Hold. The electric vehicle stock was also added to the firm's Focus List.
"Global regulations on emissions and mileage are driving the growth of EVs. While competition is rising, we expect Tesla to continue to have a significant presence in global markets," updated analyst Jeff Windau. Taking a longer view, new products and technologies are seen improving profitability for Tesla even further.
"Programs that have software or ongoing subscriptions, such as full self-driving, are especially important for Tesla, as they are expected to be more profitable. Additionally, Tesla is working to improve manufacturing efficiency and reduce costs. Specifically, ongoing design improvements with batteries should reduce costs and help to improve profitability."
On the Twitter distraction, Windau joined other analysts in saying that Musk stepping away from Twitter would benefit Tesla immediately.
Shares in the electric car maker opened Friday lower $5.92, or 5.4%, to $104.42.
