Tesla (TSLA) shares fell on Tuesday after a Bank of America analyst downgraded the stock from Hold to Buy. TSLA was trading 3.91% lower at 12:26 pm after showing some erratic behavior in early trading.

BofA Securities analyst John Murphy downgraded shares of electric-vehicle maker Tesla to Hold, but his new target price implies about 17% upside.

Tesla stock has hit a rough patch in recent weeks, but top analysts still see big gains ahead for the EV maker's stock this year.

The analyst also noted in a CNBC interview that Tesla owners paying the additional $8,000 upgrade for existing vehicles to adopt FSD would result in a big boost in profit margin. That would help provide a return on the huge amount of capital Tesla spends on artificial intelligence (AI) infrastructure to develop FSD.

Key Takeaways Tesla shares have gained ground the past two sessions after a five-day losing streak during which the stock lost 18% of its value. Despite the recent pullback, the shares have trended sharply higher since breaking out from an ascending triangle in early November following the U.

Safety regulators launched the investigation after reports of crashes involving the feature, which allows drivers to summon parked cars.