Cantor Fitzgerald analysts initiated coverage of Tesla (NASDAQ:) with an Overweight rating and $230 price target in a note Thursday, telling investors they are bullish on the company's Full Self-Driving (FSD) software.

The firm feels Tesla will benefit from future upside from its FSD software. Furthermore, the firm states that while the EV industry has been going through several challenges, such as supply chain disruptions, near-term slowdown in demand, and increasing competition from Chinese OEMS), they believe Tesla also benefits from other factors, including the introduction of lower-priced models.

The investment firm highlighted the electric vehicle giant's global manufacturing footprint with economies of scale and it having the "industry's largest Charging Infrastructure" as other factors giving it a bullish view of the stock.

"Tesla shares are down ~28% YTD, or down ~40% from its 52-week high price of $299, and this can be a good entry-point for investors who are comfortable taking on volatility, and who have a medium-to-long-term investment horizon," wrote Cantor.