After a day of big sell-offs in yesterday's market rout, Tesla (TSLA 4.72%) stock is seeing some rebound momentum in Tuesday's trading. The company's share price was up 5% as of 2:30 p.m. ET. Meanwhile, the S&P 500 (^GSPC -0.16%) was down 0.4%, and the Nasdaq Composite (^IXIC 0.55%) was up 0.2%.

Tesla stock is gaining ground on the heels of two significant news items today. President Trump made a statement of support for the company and its CEO, Elon Musk, and Wedbush put out analysis suggesting that the negative sales impact from Musk's close relationship with the president could be relatively minimal.

Trump gives Tesla and Musk another endorsement

President Trump published a message on social media this morning stating that he would be buying a new Tesla in support of the company and its CEO Elon Musk. The dynamic between Trump and Musk has played a significant role in shaping Tesla's stock performance in recent months, and investors and analysts are still trying to get a read on how it will impact the EV leader's performance in the coming years. Tesla stock surged after Trump won the presidential election in November, but it's given up those gains after falling roughly 42.5% in 2025.

Wedbush weighs in on Trump's Tesla stock impact

Wedbush published new coverage on Tesla stock this morning, maintaining an outperform rating on the stock and a one-year price target of $550 per share. As of this writing, the firm's price target suggests upside potential of roughly 135%.

Wedbush expects that protests and boycotts surrounding Tesla represent less than a 5% risk to Tesla's global sales. The firm's analysts continue to see Trump's election win and new administration as a major bullish catalyst for the stock, and expects that deregulation initiatives will help power big gains for the company's share price.