Shares of Tesla ( TSLA 22.25%) are rebounding on Wednesday. The electric vehicle (EV) stock gained 5.2% as of 1:05 p.m. ET after gaining 6.4% earlier in the day. The bounce comes as the S&P 500 and Nasdaq Composite were green even as more retaliatory tariffs on the U.S. were announced.

Tesla Inc. has had a tough few months, with Chief Executive Elon Musk at the center of a political maelstrom and the EV giant facing declining sales and intensifying competition, particularly in China, its second-largest market. The fallout may be exaggerated, according to one Wall Street analyst.

Trump is planning to enforce 25% tariffs on the auto industry, so why is Tesla cruising while others are in a spiral? Here's what to know.