• CNBC's Jim Cramer on Wednesday reviewed analysis from chartist Larry Williams that suggests Tesla's gains during the day's session might be the start of a rally.
• "If you believe Larry Williams — and he's earned a lot of credibility over the years — then this is a 'gentlemen, start your electric engines' moment for Tesla," Cramer said." Assuming he's right, the stock's rebound over the past couple of days is just the beginning of a huge move. And I got to tell you, I'm with Larry."

CNBC's Jim Cramer on Wednesday reviewed analysis from chartist Larry Williams that suggests Tesla's gains during the day's session might be the start of a rally.

"If you believe Larry Williams — and he's earned a lot of credibility over the years — then this is a 'gentlemen, start your electric engines' moment for Tesla," Cramer said." Assuming he's right, the stock's rebound over the past couple of days is just the beginning of a huge move. And I got to tell you, I'm with Larry."

Action in Tesla shares has been inconsistent since the election, roaring soon after as investors realized CEO Elon Musk would be close to President Donald Trump. But the stock has since tanked, and Cramer said some of the decline can be explained by Musk's controversial and larger-than-expected role in the administration. Controversy is not good for sales, he added, and the market has largely lost interest in "high-flying growth names" like Tesla.

But the stock started to rebound on Tuesday and continued to climb during Wednesday's session, closing the day up 7.60% after recording its worst day since 2020 at the start of the week. Cramer noted that it can be hard to predict Tesla's fundamentals in part because it trades on the potential of self-driving technology that will come to fruition years from now.

However, Cramer reviewed Williams' charts, which suggest there could be a bottom in Tesla. He first examined Williams' proprietary valuation model that suggests Tesla has become undervalued, which in the past has brought out buyers and led the stock to bounce. Another chart displays Tesla's seasonal patterns, which show that the stock typically start to rally at this time of year.

Williams also looked for cycles in Tesla beyond its seasonal performance, using his findings to create a chart that forecasts where the stock is headed.

"Right now, it suggests that Tesla should be ready to rally, maybe furiously, with a pullback creating another buying opportunity around mid-June," Cramer said. "Larry notes that we've seen this wave in Tesla numerous times before historically, the stock's rallied 80% of the time during this time period, I think that's pretty good odds."

Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com