Tesla Inc. ( TSLA )‘s (TSLA) shares ended last week down over 6% after rumors of a scrapped low-cost EV project. Despite CEO Elon Musk denying these rumors, the stock price fell 3.63% on Friday.

However, Tesla rebounded 1.86% to $167.96 in premarket trading on Monday, after surging as much as 3.89%, according to Benzinga Pro data. This shift in sentiment might be linked to Musk’s announcement of a robotaxi unveiling on Aug. 8. Analysts bullish on Tesla’s full-self driving (FSD) software believe the company may be prioritizing robotaxis over the low-end EV.

Deepwater Asset Management’s Gene Munster said, “This is the right move for Tesla. Being the first to do full autonomy at scale is huge first mover advantage. While the event is in August, my guess is we see Robotaxi’s on the road in 2027.”

Technical factors could also be at play in the rebound.

Source: Benzinga Pro

After Friday’s drop, Tesla approached its March 14th intraday low of $160.51. Bouncing off this support level suggests a potential for a recovery, barring negative news. Investors will be watching the company’s first-quarter earnings report and subsequent call scheduled for April 23rd.

See Also: Everything You Need To Know About Tesla Stock