Tesla stock is gaining ground following a recent report suggesting that the company could be on track to receive a $400 million contract through the U.S. State Department. However, subsequent developments are casting doubt on whether the deal will actually go through. The stock is also getting a boost from bullish analyst coverage.

After a brutal stretch this month that brought the stock's year-to-date decline to more than 30% at one point, Tesla's stock has rallied back above the 100-day moving average, Yahoo Finance data shows.