Published 03/12/26 AT 5:54 AM AEDT Share on Facebook Share on Pocket Tesla Inc.'s stock climbed more than 1% on Wednesday as investors reacted to robust sales figures from China and renewed bullish sentiment from Wall Street analysts, helping the electric vehicle maker shake off recent concerns over delivery trends and regulatory pressures. Tesla electric vehicle chargers are seen during the winter in Hofn Tesla (NASDAQ: TSLA) shares opened at $402.22 and traded in a range of $402.15 to $416.38 during the session, closing around $406 amid elevated volume of more than 50 million shares. The gain marked a rebound from Tuesday's close of $399.24, pushing the company's market capitalization above $1.52 trillion. The uptick came as Tesla reported a dramatic 91% surge in China-made electric vehicle sales for February, according to data released this week. The sharp increase contrasted with softer overall market conditions in the world's largest EV market and provided a positive counterpoint to earlier worries about weakening demand in key regions. Analysts pointed to the China performance as evidence of Tesla's resilience in its second-largest market, where the company operates a major Gigafactory in Shanghai. The sales jump helped offset broader concerns, including analyst revisions lowering 2026 delivery estimates and anticipation of a potential third straight year of decline in global vehicle shipments. Despite the headwinds, some Wall Street firms have grown more optimistic. Bank of America recently reinstated a "Buy" rating on Tesla shares, setting a $460 price target and highlighting the company's leadership in autonomous driving technology and energy storage. The upgrade contributed to upward momentum earlier in the month, with shares recovering from lows near $380 in recent sessions. Tesla's stock has shown volatility in early 2026, trading within a 52-week range of $214.25 to $498.83. The shares remain well above last year's trough but below the December 2025 peak. Year-to-date, the stock has faced pressure from macroeconomic factors, including high interest rates impacting auto financing and increased competition from legacy automakers and Chinese rivals. Investors continue to monitor Tesla's pivot toward artificial intelligence and robotics. CEO Elon Musk has emphasized the potential of the company's Full Self-Driving (FSD) software and Optimus humanoid robot projects. Musk recently described a "Digital Optimus" initiative as a collaborative effort between Tesla and his xAI venture, fueling speculation about long-term growth drivers beyond traditional vehicle sales. Tesla joined a new coalition this week aimed at modernizing power grid management, a move that could bolster its energy business, including Megapack storage systems. The initiative aligns with Tesla's expanding role in renewable energy infrastructure, which has become a growing revenue stream amid fluctuating EV demand. Regulatory developments remain a key focus. Tesla faced a March deadline to submit detailed FSD data to the National Highway Traffic Safety Administration (NHTSA) following an investigation into system performance and traffic incidents. While the submission period passed without immediate public fallout, analysts say ongoing scrutiny could influence investor confidence in autonomous tech timelines. Insider activity also drew attention, with Chief Financial Officer Vaibhav Taneja selling shares to cover tax obligations related to equity compensation — a routine transaction but one that underscores liquidity needs amid stock-based pay structures. Longer-term forecasts vary widely. Some analysts project Tesla's robotaxi business could generate hundreds of billions in annual revenue by the mid-2030s, potentially adding trillions to the company's valuation. Others caution that heavy investments in AI infrastructure and robotics may pressure near-term earnings, with last year's vehicle deliveries down 8.6% and revenue slipping 3%. Tesla's price-to-earnings ratio hovers above 370, reflecting a premium valuation tied to future growth expectations rather than current fundamentals. The stock's beta of 1.93 indicates higher volatility compared to the broader market. Market observers say Tesla's performance in coming quarters will hinge on execution in autonomous driving milestones, energy storage deployments and global EV demand recovery. With competition intensifying and economic uncertainty lingering, the company's ability to innovate remains central to its narrative. As of mid-March 2026, Tesla shares reflect a mix of caution and enthusiasm. The day's gain underscores investor willingness to focus on positive catalysts like China sales amid a challenging backdrop for the EV sector. Tesla did not immediately respond to requests for comment on the session's trading activity. © Copyright 2026 IBTimes AU. All rights reserved. MEET IBT NEWS FROM BELOW CHANNELS Request a Correction