Tesla Stock Rallies Over 20% Since Q1 Miss — Wall Street And Retail Traders Are Growing More Bullish

Tesla, Inc.’s (TSLA) stock rose for a fifth straight session on Monday and has jumped about 23% since reporting a major quarterly earnings miss last week.

Among the primary drivers is CEO Elon Musk, who has promised to spend more time at the company starting next month. He is currently focused on his role in Washington, D.C., as part of President Donald Trump's Department of Government Efficiency (DOGE).

Wall Street is also beginning to focus on other imminent catalysts, including the new Model Y sales ramp, the arrival of lower-priced vehicles, and the anticipated rollout of unsupervised full self-driving (FSD) in Austin this June.

On Monday, Piper Sandler reiterated a $400 price target and 'Overweight' rating on Tesla, citing a positive data point "buried" in the company's recent 10-Q filing.

According to the analyst, Tesla's Q1 gross margin should have been lower based on a 32% delivery slump from the fourth quarter. Still, automotive deferred revenue increased by $259 million from the prior three-month period.

The research firm believes this implies rising take rates for FSD software, which could have acted as a tailwind for Tesla's "surprisingly stable" Q1 gross margin.

Cantor Fitzgerald also retained an 'Overweight' rating for Tesla, with a $355 price target, ahead of what it says are material near-term catalysts. 

The firm's analysts are encouraged by Musk's pledge to allocate more time to Tesla, the company reaffirming the Robotaxi launch in Texas in June and introducing a cheaper model by the first half of 2025.

Recent regulatory moves aimed at boosting the deployment of autonomous vehicles on U.S. roads are also bolstering investor confidence.

On Stocktwits, message volume for Tesla has jumped to 'high' levels since the recent earnings report, with sentiment flipping to 'bullish.'

Some retail traders on the platform noted recent insider purchase disclosures as a sign of rising confidence within the firm.

Optimism also grew following reports that President Donald Trump plans to cut some duties on foreign parts used in domestically manufactured cars and prevent tariffs on imported cars from stacking on other levies.

According to Koyfin, 23 analysts rate Tesla as a 'Buy' or 'Strong Buy,' 14 recommend 'Hold,' and 11 have a 'Sell' or 'Strong Sell' rating. 

Tesla shares currently trade at a 1% discount to the average Wall Street price target. The stock has lost 26% this year, significantly underperforming the broader market.

For updates and corrections, email newsroom[at]stocktwits[dot]com.