Tesla Inc. shares rebounded on Tuesday after a five-day losing streak wiped out about $149 billion from the companys valuation.

A steady stream of positive news — including an upgrade from a Wall Street analyst, a rally in the cryptocurrency Bitcoin and a broader turn in sentiment toward high-multiple technology stocks — are luring investors back to electric-vehicle makers, and Tesla.

Shares of the Elon Musk-led company jumped more than 8% at the open, after falling 22% in the past five sessions. Precipitous drops, however, are nothing new for Tesla investors. The stock has seen three sharp selloffs of more than 30% in a span of about a month since the beginning of 2020.

While the market has recently soured on expensive growth stocks like Tesla amid a rise in Treasury yields, shares of the EV maker have also been hit hard as a slew of legacy carmakers this year announced their plans to aggressively push into the electrification trend.

Yet, a steep rout in the stock can be an opportunity to buy the shares. On Tuesday, New Street Research analyst Pierre Ferragu upgraded Tesla to buy from the equivalent of a hold, saying the company has two years of earnings momentum ahead and its demand outlook is stronger than supply could ever be.

New Streets

forecast implies Tesla could deliver $12 of EPS in 2023, the analyst said in a note. Average analysts profit estimate for the period stands at $7.73 a share, according to data compiled by Bloomberg.

With such earnings revision, we would expect the stock to remain in the upper end of the 50-100x range, similar to where Amazon traded on for almost a decade, and below todays multiple of 100x, Ferragu said.

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