Tesla stock has enjoyed an unprecedented ride up that could almost make a SpaceX astronaut jealous, so does it even matter that the company is “overvalued” in the eyes of some analysts?

Last week, Tesla Inc. (Nasdaq: TSLA) shares tumbled after analysts from Morgan Stanley and Goldman Sachs downgraded outlooks for the stock, citing general overvaluation and risks surrounding its business in China. Tesla stock fell almost 4% Friday to just above $935.

Shares fell another 2% in premarket trading Monday, but recovered and closed nearly 6% higher at $990.90.

What a Tesla Stock Downgrade Really Means

Banyan Hill Publishing Chartered Market Technician Chad Shoop says it’s best to ignore valuations like what recently dropped for Tesla stock — and in fact, there is something more nefarious at play here: price manipulation.

“These downgrades are based on a broader agenda at Wall Street firms to manipulate the stock,” said Shoop, Editor of Quick Hit Profits and Automatic Profits Alert. “It’s great for headlines and news articles, but doesn’t have an impact beyond that.”

And it’s especially true for Tesla stock.

Tesla stock offering Tesla Tesla cutting salaries“When you read the analysis and the reasoning, it is just the same old story — capital needs, near-term demand issues, competition,” Shoop said. “Tesla has heard these issues for years and have had analysts downgrade them nonstop. Still, its share price has managed to run to an extremely high valuation, setting new all-time highs, which is great news for the stock.”

While there have been questions surrounding Tesla’s performance in the Chinese market, some good news broke Monday on that front. Data from China Automotive Information Net showed 11,364 vehicles were registered in May, a 150% increase from April, according to Reuters.

“The company is seeing demand in China come back, even with competition,” Shoop said. “And it will see improvements in the U.S. as well with the economy slowly opening back up.”

When weighted against the bearish outlooks of two of the world’s largest firms, Shoop, who specializes in options trading, is bullish when it comes to Tesla stock.

“The downgrade doesn’t mean anything to me,” Shoop said. “As long as shares of Tesla stay above $850, I’d only trade bullish positions on the stock.”

Tesla stock has had quite a wild ride up over the last few months. It’s a popular stock among short sellers, which only adds more fuel to its wild movements. The stock is up over 170% from its Nov. 18 close, but it hasn’t exactly been a smooth ride.

Tesla also has seen more than its share of volatility, particularly when enigmatic CEO Elon Musk does things like announce his own company’s stock is overvalued on Twitter.

That news alone wiped out $13 billion from Tesla’s market cap, but the dip didn’t last long as shares are trading around $1,000 again.

Tesla stock has been a favorite of Shoop’s to follow, and he featured the company in a recent Quick Takes YouTube video, where he gives a brief breakdown of a batch of popular stocks.

“The stock broke out higher from the wedge pattern I pointed out, and has already made the expected run from that breakout,” Shoop said.

Where does Shoop think Tesla stock is heading next?

“Look for the stock to consolidate and form a new uptrend as shares continue marching higher,” he said.

Check out the full video below, and be sure to subscribe to Shoop’s YouTube channel to catch more insights into stocks on his radar.

Shoop is also a regular contributor for Winning Investor Daily, and he’s got another recent analyst downgrade he thinks investors should be ignoring, so check out his video below.

P.S. Shoop went more in-depth on why he thinks you should ignore Wall Street analysts, so check out more of his thoughts over on BanyanHill.com, where he discusses a recent downgrade of Micron Technology Inc. (Nasdaq: MU).