Tesla rebounds for a second consecutive day following its largest decline since 2020.

Tesla shares rose for a second consecutive day in early trading on Wednesday, recovering after experiencing their worst day since 2020 earlier in the week.

The stock was up nearly 6%, following a 3.8% increase on Tuesday.

Earlier this week, shares dropped 15.4% on Monday, marking the worst session since September 2020, as investors offloaded popular tech stocks amid fears of a recession and tariff uncertainties. This decline contributed to the Nasdaq’s worst day since 2022 and wiped out $750 billion in market value among prominent tech giants.

Tesla has faced significant declines in recent weeks, losing over 40% in market value since President Donald Trump took office. Following the election, shares initially surged on expectations that Musk’s close relationship with the president would be advantageous for the company.

Concerns over tariffs have exacerbated these challenges, with the threat of a trade war impacting two key supplier markets. As a result, Tesla is currently experiencing its longest losing streak in its 15-year history on the public market.

Since Trump’s inauguration, Musk has emerged as a prominent figure in the new administration and serves as a close advisor to the president, working towards reducing government spending through the newly established Department of Government Efficiency.

On Tuesday, Trump announced plans to purchase a Tesla in support of Musk amid protests and demonstrations at Tesla locations nationwide.

Tesla is also grappling with brand damage resulting from inflammatory political comments on Musk’s social media platform X, which experienced several outages on Monday. Additionally, SpaceX, Musk’s aerospace and defense company, is currently investigating two test flight explosions.

The company faces a divided Wall Street; skeptics are highlighting increasing competition in the EV market, declining new vehicle deliveries, and the potential impact of tariffs on short-term business. Meanwhile, supporters still hold confidence in Musk’s ability to reveal an affordable new model EV and launch a driverless ride-hailing service later this year.

A recent investor survey revealed that 85% of respondents believe that political factors are harming the company. Consequently, shares have declined by more than a third since the beginning of the year.

— Reporting contributed by CNBC’s Lora Kolodny.