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Tesla (NASDAQ: TSLA) has been added to Baird's “Best Ideas” list. Shares rose for the second straight session on Tuesday, breaking a streak of six straight losses.

Baird added Tesla to its “best ideas” list. The brokerage highlighted the recent price decline and expansion, among other potential catalysts, in its bullish note. Tesla breaks six-day price reduction. Shares have already lost 13.5% in August. TSLA jumped 2.8% to $237.80 (at the time of writing) during market trading on Tuesday. On Monday, Tesla shares rose 7.3% to $231.28 per share.

To date, 17 out of 25 brokerages have rated Tesla stock as “hold” or worse. Their 12-month average price target of $239.82 is a reflection of near the current value. Options traders are also bearish. Bearish rates are rising faster than usual compared to the last 12 months.

Baird said Tesla's price cuts and their impact on margins will drive the narrative in the second half of the year. However, there are other potential catalysts for the stock including the launch of Cybertruck, wider adoption of Full Self-Driving, and expansion into new markets. The firm added that Tesla is still on track to meet its production target of 1.8 million vehicles this year.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.