Tesla Inc ( TSLA ) shares are trading higher Monday as broader markets rebound amid reports suggesting tariffs could be narrower and more targeted.

What To Know: According to a Bloomberg report, U.S. President Donald Trump’s reciprocal tariffs may be more targeted than what was initially expected.

The report indicates that the Trump administration could hold off on introducing sectoral-specific tariffs and may announce that some countries will be exempt, according to U.S. officials familiar with the matter.

Tesla shares are racing higher to start the week. The strong bounce in shares is likely due to the swift selloff the stock has faced since the start of the year. Even with Monday’s gains, Tesla shares are still down about 32% year-to-date. The stock appears to be breaking out after testing support in recent weeks.

Renowned trader and chartist Larry Williams called a bottom on Tesla stock last week. He noted that smart money flowed out of the name toward the end of last year as shares surged but money has started to flow back in as the stock has given back some of its gains.

"When I look at the conditions of this stock, I see what I like to see," Williams said, noting that it's undervalued and a bullish cycle should be coming.

See Also: Tesla Jumps 10% On China FSD Optimism, Tariff Easing Hopes

Analysts have also made several bullish calls in recent weeks with Tesla shares well off their highs for the year. Cantor Fitzgerald analyst Andres Sheppard upgraded Tesla from Neutral to Overweight and set a price target of $425 following a visit to Tesla's Austin Gigafactory and AI data centers.

Sheppard flagged an attractive buying opportunity ahead of several material catalysts including the Robotaxi segment introduction, the rollout of Full Self-Driving, a lower-priced vehicle, Optimus bot production and the introduction of the Tesla Semi.

"Overall we are bullish after our factory visit, and after the recent market selloff and share underperformance. We see future revenue upside from FSD, Robotaxi, Energy Storage & Deployment, and Optimus Bots, to be fundamental to TSLA's thesis over the long term," the analyst said.

Morgan Stanley and Wedbush also reiterated Overweight ratings on Tesla last week. Wedbush’s Dan Ives addressed investor concerns over CEO Elon Musk’s role at the Department of Government Efficiency (DOGE), noting that Musk held an all-hands meeting with employees to reassure workers that he remains focused on Tesla.

Ives said he expects Musk to take a small step back from DOGE over the coming months and increase his focus on the Tesla brand.

“Brand is key to Tesla and its a very important to make sure the current brand crisis does not morph into a permanent black eye for the Tesla brand,” Ives said.

TSLA Price Action: Tesla shares were up 9.69% at $272.80 at the time of publication Monday, according to Benzinga Pro.

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