European markets slightly higher as momentum returns

A Tesla short-seller has named two auto stocks that he believes have the potential to deliver 100% upside to investors.

Lekander, who holds a short position in Tesla shares, has said the EV carmaker could “go bust” while its stock could fall to $14. Short-sellers profit when shares fall.

The hedge fund manager said that the “Tesla bubble” had created what he called an “anti-bubble” in the auto sector, causing investors to be overly bearish on companies that are actually performing well.

Lekander named the two auto stocks that could double in share price from current level as the Tesla bubble deflates. CNBC Pro subscribers can read more here.

— Ganesh Rao

Some investors may be hesitant about buying Tesla right now, but one analyst is bullish on the stock.

Over the last 12 months, the stock of Elon Musk’s auto giant has plunged by nearly 14.5%.

Shares also took a hit on Tuesday, after Tesla delivered far fewer cars than expected by analysts polled by FactSet in the first quarter of the year.

One global autos analyst, however, sees opportunities in investing in Tesla, particularly in the longer term.

“The stock, despite this performance today, is only down like 4.5%, which makes me think that expectations are already really low,” Tom Narayan from RBC Capital Markets told CNBC’s “Squawk Box Asia” on April. 3.

He also outlined other opportunities he sees in both the short and longer-term.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets are set to open higher Thursday.

The U.K.’s FTSE 100 index is expected to open 7 points higher at 7,936, Germany’s DAX up 1 point at 18,371, France’s CAC 9 points higher at 8,161 and Italy’s FTSE MIB up 26 points at 33,908, according to data from IG. 

Wednesday is light on the corporate earnings front, but inflation data is due out of the euro zone and Turkey.

— Karen Gilchrist