A sustained rally by Tesla’s badly battered stock since last week and continuing Monday comes as welcome news ahead of the company’s annual shareholders meeting Tuesday afternoon in California.

Tesla’s shares surged by as much as 6 percent Monday following a spate of analysts’ comments about the growing demand for Tesla electric vehicles (EVs), especially the Model 3 which is going great guns in Europe. The sudden turnaround in sentiment contrasts markedly to those in previous weeks marked by portents of gloom and doom for Tesla whose stock was once down almost 40 percent this year.

That slump shows signs of eroding. Tesla shares ended trading Monday at $212.88, up 4.1 percent. It improved further to $215.25 in after-hours action.

Tesla last week saw its biggest weekly gain since October 2018. Its stock jumped by 10.5 percent to outdo the broader market, which saw stocks post their best week this year amid a perceived deceleration in trade war tensions.

A number of analysts are making known their optimism ahead of Tesla’s annual shareholder meeting Tuesday. Some were once quite bearish on Tesla.

Among them was Morgan Stanley analyst Adam Jonas, who last month warned Tesla’s stock might plummet to $10 in a worst-case scenario. In his latest note to investors, however, Jonas told clients he believes Tesla’s weak demand is "largely temporary."

"For the remainder of 2019, we expect a significant sequential improvement in demand driven by: continued European ramp, greater availability of leasing, Model S/X refresh, introduction of lower priced models and a number of price reductions," wrote Jonas last week.

Another Tesla bull, JMP Securities analyst Joseph Osha said his data show Tesla's second quarter appears better than the first, which he said was a huge disappointment for investors.

Osha said his numbers show that more Model 3s were registered in April and May than during all of the first quarter, "and it is important to note that Tesla's quarterly vehicle deliveries are typically back-end loaded. Demand for the Model 3 continues to be solid."

Some analysts and investors are betting this rally is a flash in the pan and that Tesla’s stock might tumble from current levels.

As for Tesla’s investors, they’re in for a lively shareholders meeting amid the company’s still formidable production delays, mounting competition and senior management firings. And let’s not forget Trump’s trade war on China.

Investors will vote on Tuesday to re-elect two board members. They’ll also decide on proposals relating to supermajority voting and a public policy committee.

Tesla will also ask shareholders to approve the issuance of 12.5 million in new shares as part of a new equity incentive plan. The plan will allow Tesla to continue issuing stock as compensation for employees and executives.