Tesla Inc.'s stock has shown signs of recovery, with shares climbing back to around $340, prompting a short covering event. Analysts and traders have expressed optimism about Tesla's future, with Wedbush analyst Dan Ives predicting a potential multi-trillion dollar valuation for Tesla due to its focus on AI and autonomous driving technology, bolstered by CEO Elon Musk's influence on the Trump administration. Ives also suggested that Tesla's stock could reach $500 to $600 within the next 18 months, with some traders betting on the stock reaching $400 by year-end, potentially fueled by a 'Santa rally'. The bullish sentiment is reflected in the options market, where there has been significant buying of call options for January and August at various strike prices.