Tesla stock extended its recent rebound on Tuesday, rising for a third consecutive session as investors weighed analyst commentary, strategic developments in the company’s energy business, and changes in senior management.
Tesla shares were up about 1.5% at $423.05. The broader market was mixed, with the S&P 500 flat and the Dow Jones Industrial Average up about 0.4%, trading above the 50,000 level.
The latest gain followed advances of 3.5% on Friday and 1.5% on Monday. The rebound offered some relief after recent weakness.
Tesla closed below $397.05 last Thursday, marking its first close under $400 since late November.
In contrast, other tech giants were having a tough session on Tuesday. Shares of Alphabet, Nvidia, AMD and Apple were all in the red.
Teala stock stabilises after post-earnings weakness
Tesla shares have struggled to gain traction since the company reported fourth-quarter earnings on January 28.
While results exceeded Wall Street expectations, the stock has remained under pressure, reflecting investor caution.
Coming into Tuesday’s session, shares were down more than 3% since the earnings release.
Market participants have said that, despite solid financial performance, investors appear to be waiting for clearer progress on artificial intelligence and autonomous driving initiatives before assigning higher valuations to the stock.
Chief Executive Officer Elon Musk has increasingly emphasised Tesla’s focus on AI, robotics and autonomy, but analysts said tangible milestones in those areas remain key to sustaining a longer-term rally.
Morgan Stanley highlights solar opportunity
Adding to Tuesday’s momentum, Morgan Stanley reiterated its Equalweight rating on Tesla and maintained a $415 price target, close to the stock’s recent trading levels.
The bank’s stance followed Tesla’s tentative announcement to add 100 gigawatts of solar manufacturing capacity.
Morgan Stanley said the expansion aligns with Musk’s broader vision of integrating renewable energy, energy storage and data infrastructure.
The firm noted that Tesla’s balance sheet remains relatively strong, with more cash than debt and a current ratio of 2.16, indicating solid short-term liquidity.
Morgan Stanley said vertical integration in solar manufacturing could support Tesla’s plans to develop solar-powered data centres and create synergies with its energy storage business.
At full capacity, the bank preliminarily estimates that Tesla Solar could add $20 billion to $50 billion in equity value, equivalent to roughly $6 to $14 per share, to the company’s energy segment.
The firm currently values Tesla’s energy business at about $140 billion, or $40 per share.
While the potential uplift is not viewed as material to Tesla’s overall valuation on a standalone basis, Morgan Stanley said the strategy could be justified by longer-term growth and value creation.
Leadership changes signal operational pressure
Separately, Tesla is also making a key management change in its automotive operations.
According to a report by Bloomberg, Joe Ward, Tesla’s vice president for Europe, the Middle East and Africa, will take over leadership of the company’s global sales, service and delivery organisation.
Ward’s appointment comes as Tesla faces slowing electric vehicle demand in the United States and steep sales declines in parts of Europe.
The company has also intensified its investments in artificial intelligence, autonomous driving and humanoid robots, reshaping internal priorities.
The move follows the departure of Tesla’s head of sales for North America and continues a series of senior exits in recent years.
Longtime Musk associate Omead Afshar left last year after overseeing sales and manufacturing in North America.
Milan Kovac, who led the Optimus robot engineering program, and David Lau, Tesla’s longtime software chief, also exited in 2025.
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