Another Analyst Stays Bullish on Tesla Stock, That's Helping to Fuel a 3-Day Rally

Tesla made it three up days in a row Friday after a brutal stretch for the stock. A call from an analyst might help keep the streak alive.

Tesla stock rose 4.9% Wednesday and 7.4% Thursday after dropping 38% this month coming into Wednesday trading. Shares are up another 7.33%, at $759.63 on Friday. The S&P 500 is up 2.47%, while the Dow Jones Industrial Average is up 1.76%.

Credit Suisse analyst Dan Levy might be giving Tesla stock an extra boost to close the week. On Friday, he reiterated his bullish stance on shares. What's more, he didn't cut his price target amid the stock's recent slide.

In a report, Levy said the recent fall in Tesla stock is an attractive entry point. He doesn't seem to believe that production problems caused by Covid lockdowns in Shanghai are long-term issues. He maintained his Buy rating and $1,125 price target.

The average analyst price target for Tesla stock has gone to about $942 from $1,000 at the start of May. Several analysts have cut target prices because of the Shanghai situation as well as the overall economic environment.

Tesla stock, along with shares of General Motors and Ford Motor, are down about 35% year to date on average. Investors are worried that higher interest rates and inflation will slow sales while raising costs.

Tesla stock has also been impacted by CEO Elon Musk's potential purchase of Twitter. Whether or not the purchase represents a distraction for Musk is up for debate. But he sold Tesla stock to finance the purchase and originally planned to pledge Tesla stock to raise debt for a portion of the deal financing.

On May 24, Musk allowed the margin loan commitment to expire. He likely won't use pledged stock to buy Twitter if a deal happens. That reduces the risk that he will have to sell additional large blocks of Tesla stock down the road, a prospect that investors regarded with alarm. The expiration of the debt commitment is part of what pushed Tesla stock up about 13% over the past few days.

There is a lot going on with Tesla stock lately. Twitter investors are suing Musk because his tweets about the deal have resulted in lot of volatility for Twitter shareholders.

The lawsuit doesn't seem to be affecting Tesla stock. Tesla and Twitter didn't immediately respond to a request for comment about the lawsuits.