Why Jon Najarian Expects Tesla Shares To Trend Higher From Current Levels

Tesla Inc TSLA shares traded below $700 Thursday before staging an intraday reversal. The stock's fierce bounce off the lows could be the start of an upward trend for the EV maker, according to Market Rebellion co-founder Jon Najarian.

Tesla bulls might be looking to accumulate in the $780 to $800 range, Najarian said Friday on CNBC's "Fast Money Halftime Report."

He noted the stock seemed to accelerate to the downside on the back of the newly announced SEC investigations into Tesla CEO Elon Musk and his brother, Kimbal.
Related Link: SEC Investigating Elon Musk, Brother Kimbal For Potential Violation Of Insider Trading Rules

"To drive it back up in the face of that investigation says a little bit about the strength or the commitment that people have," Najarian said.

He's holding Tesla calls, but has also sold some calls against his position.

"I don't see anything in this, either the investigation or anything else in the market that stops Tesla from continuing on its upward trend now that it's starting to resume," Najarian said.

On Friday, Daiwa Capital upgraded Tesla from a Neutral rating to an Outperform rating, but lowered the price target from $980 to $900.

TSLA Price Action: Tesla has traded as low as $539.49 and as high as $1,243.49 over a 52-week period.

The stock was down 0.37% at $797.83 Friday afternoon.

Photo: courtesy of Tesla.