Tesla stock fell on Friday after an epic gain the day before.Shares of the electric vehicle maker closed down 2.3% at $238.25, while the S&P 500 dropped 0.2% and the Dow Jones Industrial Average added 0.

Shares of Tesla Inc. slipped 2.32% to $238.25 Friday, on what proved to be an all-around mixed trading session for the stock market, with the Dow Jones Industrial Average rising 0.09% to 42,063.36 and the NASDAQ Composite Index falling 0.

However, Deutsche Bank analyst Ed Yu believes investors should take advantage of the dip. Yu resumed coverage of Tesla recently, rating the stock a buy and giving it a $295 price target -- about 30% above its current level. Here's why the analyst could be right.

Stocks soared Thursday after the Federal Reserve cut interest rates by 50 basis points the day before. One of the biggest winners was Tesla (NASDAQ: TSLA). Shares jumped 7.4% as investors saw the rate cuts as a clear tailwind for the U.S.'s largest electric vehicle (EV) maker. That gain was enough to add $50 billion to its market cap.

For years, Tesla has maintained a strong position in the EV industry, but an analyst is suggesting the firm might be overlooked in AI.

Shares of electric-vehicle maker Tesla tend to be more volatile the day after a Federal Reserve interest-rate decision than on the day itself.