Tesla stock rose continued to rise 2% in premarket trading after a 4.7% rally on Wednesday as weeks of bad losses resulted in an upgraded from Cantor Fitzgerald analystAndres Sheppard, who raised his rating to Buy from Hold, citing “material catalysts” for shares.

The Fed helped most stocks. Many shares jumped while chairman Jerome Powell spoke to investors Wednesday afternoon. The Fed still envisions rate cuts in 2025 despite increasing uncertainty and potentially higher inflation due to tariff policies.

As for Sheppard, he contends the recent declines have been too extreme. “We believe the recent selloff represents an attractive entry point for investors with greater than 12-month investment horizon (and who are comfortable with volatility),” wrote Sheppard.

Things Sheppard believes will drive share higher in the coming months include: starting to sell full self-driving, or FSD, Tesla’s highest-level driver assistance product, in China this quarter; starting to sell FSD in Europe in the first half of 2025; a robo-taxi rollout in the second half of 2025; a new model for sale in the second half of 2025; and robot production and sales in 2026.

Sheppard kept his price target at $425. An upgrade with an unchanged price target shows something is up with the stock. There has been a lot for investors to digest.

Tesla shareholders must always be ready for volatility. In the past year, shares have ranged in price from $139 to $489. Tesla stock fell a total 9.9% over Monday and Tuesday combined. Investor sentiment has been weakening amid falling first-quarter and full-year delivery estimates, lower Wall Street price targets, heightened competition from Chinese EV maker BYD, questions about what Tesla will be able to charge for its highest-level driver assistance features as options from other auto makers improve, and politically motivatedprotestsat Tesla facilities.

Musk appeared on Fox News’s Hannity on Tuesday evening and addressed the protests in part of the interview. “It’s really come as quite a shock to me that there’s this level of…hatred and violence from the [political] left,” said Musk. “Tesla is a peaceful company, we’ve never done anything awful.”

Most of the interview with Sean Hannity focused on SpaceX and the return of two astronauts who had been stuck on the International Space Station since June after a Boeing spacecraft ran into technical problems. He also talked about President Donald Trump’s Department of Government Efficiency, or DOGE, which Musk directs.

“Our debt had gotten so high that just the interest payments on debt exceed the entire military budget,” Musk pointed out while defending DOGE.

Musk’s intentions aside, on Tuesday, he and DOGE lost a significant court case over the closing of USAID with U.S. District Judge Theodore Chuang essentially stopping DOGE from conducting business the way it has been.

There is a lot of noise swirling around Tesla stock these days. Investors have reacted by selling shares. Coming into Wednesday trading, Tesla stock was down about 47% since the Jan. 20 inauguration.

The stock has fallen far enough for Cantor, though. Sheppard is happy to buy shares at the current price.

Overall, 50% of analysts covering Tesla stock have Buy ratings, according to FactSet. The average Buy-rating ratio for stocks in the S&P 500 is about 55%. The average analyst price target for Tesla stock is about $367.