Tesla shares jumped nearly 8% on Wednesday after hitting a 52-week low a day earlier. The rally adopted an improve by analysts at Citi and a sign from Tesla CEO Elon Musk that South Korea is a prime candidate for a brand new manufacturing facility the corporate hopes to construct in Asia.

The rebound is a respite for Tesla buyers, who’ve seen the worth of their holdings fall by about half this yr amid a broader plunge out there and a shift out of dangerous property.

“We consider the year-to-date pullback has balanced out the near-term danger/reward,” Citi analysts wrote, elevating their score on the inventory to impartial. “To turn into bullish from right here, we would like to realize added confidence on the common sale worth/auto gross margin bridge (together with monitoring near-term datapoints in China and Europe) and FSD progress.”

FSD refers to what the corporate calls its full self-driving functionality. Tesla sells driver help methods, together with the usual Autopilot, put in in all of its new vehicles, and a premium FSD possibility. Within the U.S., Tesla’s FSD presently prices $15,000 upfront or $199 per 30 days on a subscription foundation. The corporate does not say what proportion of customers select that possibility or what number of finish their subscription.

Musk has been promising Tesla buyers and clients since 2016 that his firm will have the ability to flip its vehicles into self-driving autos able to working as robotaxis. Nonetheless, it is but to ship. Drivers utilizing Tesla’s Autopilot, Enhanced Autopilot, FSD and FSD Beta methods are supposed to stay attentive to the street, with fingers on the steering wheel, able to take over the driving process always.

Along with the Citi word, Musk spoke on Wednesday with South Korea’s President Yoon Suk-yeol and expressed optimism {that a} new Tesla manufacturing facility will ultimately open within the Asian nation.

The prolonged selloff that preceded Wednesday’s rally has come as Musk’s consideration has largely turned to Twitter, which he acquired final month for $44 billion.

Some dips in Tesla shares adopted large inventory gross sales by Musk as he liquidates partially to finance the Twitter deal. Earlier this month, Musk offered one other $3.95 billion in Tesla shares, telling Twitter staff he was doing so to avoid wasting the social media firm.

Musk swiftly carried out mass layoffs, fired executives and tweaked vital options of the platform. In response, many advertisers paused spending on Twitter campaigns indefinitely, and civil rights activists have known as for additional boycotts till Musk’s staff proves it may handle hate speech and different dangerous content material on Twitter.

Some Tesla analysts and buyers fear about potential spillover to the electrical automobile firm. Adam Jonas, an analyst at Morgan Stanley, wrote in a report on Wednesday that the Twitter scenario might damage shopper demand for Tesla in addition to industrial offers, authorities relations and “capital markets assist.” The agency nonetheless recommends shopping for Tesla shares and has a $330 worth goal.

The inventory traded at near $183 as of late afternoon on Wednesday.

Leo Koguan, one of many firm’s largest particular person shareholders, and different buyers have requested for an enormous inventory buyback by Tesla. In a petition shared on Change.org, Tesla bull and influencer Alexandra Merz stated a swift buyback would enable Tesla to “profit from a presently very unvalued inventory worth,” and “act earlier than the 1% tax on share buybacks turns into relevant on Jan 1, 2023.”

Musk has stated he is prepared to do a buyback at Tesla, pending board approval. Final month, on the corporate’s third-quarter earnings name, Musk stated Tesla is more likely to do a “significant buyback” subsequent yr, doubtlessly between $5 billion and $10 billion.

WATCH: Tesla upgraded by Citi