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Tesla Motors Inc. (Nasdaq: TSLA) stock rebounded from March losses today when it reached a two-week high of $235.73 in early trading. The stock has since pared its gains, but is trading up almost 9% on the week.
Tesla had been one of the hottest stocks of the past year, posting a gain of 637% from the start of 2013 through February 2014.
But those gains came to a screeching halt last month, and from March 4 through March 31, TSLA stock dropped almost 17%.
Here's a closer look at what's behind this volatile movement for Tesla stock…
Why Tesla (Nasdaq: TSLA) Stock Took a Wild Ride
One of the reasons behind TSLA stock's March drop was the flurry of legislative news that broke during the month.
On March 11, the New Jersey Motor Vehicle Commission ruled that Tesla would no longer be allowed to sell its vehicles directly to consumers. New Jersey requires automakers to sell their vehicles through franchised dealerships, but Tesla had received licenses allowing direct sales at two New Jersey locations. On March 11, the state passed a new regulation revoking Tesla's right to sell directly to customers.
At the same time, similar legislation was being discussed in New York and Ohio, and it was looking like Tesla's business model would be outlawed in an increasing number of states.
But yesterday, news broke that Tesla would be appealing that legislation in New Jersey in an attempt to bring direct sales back to one of the U.S.'s largest luxury vehicle markets.
That news helped send Tesla shares up more than 6% yesterday alone.
The last week has also seen positive headlines out of New York and Ohio, where Tesla has reached compromises with both of those states to continue direct sales.
But it wasn't just news stateside that sent TSLA stock higher this week…