Tesla (TSLA) stock closed 3% higher on Monday following a slide earlier this morning. The recent downward pressure on shares of the electric-vehicle (EV) giant earlier in the session came despite a bullish note from Goldman Sachs analyst Mark Delaney.

"We believe that Tesla, given its leadership position in EVs (including its vertical integration and tight coupling of hardware and software, as well as its ecosystem of charging stations and brand), and its focus on clean transportation more broadly (given its solar and storage businesses) will be best positioned to capitalize on the long-term shift to EVs," wrote Delaney in a note to investors.

"We expect Tesla to expand margins in the intermediate term as it ramps the important Model Y product as well as new factories in Berlin, Germany and Austin, Texas, and in the long-term as it increases its mix of software revenue," he continued.

The analyst raised his 12-month price target on Tesla to $1,200 and maintained a Buy rating, citing "robust 4Q21 deliveries."

Tesla shares declined on Monday amid an over sell-off in technology and growth stocks. The 10-year treasury yield (^TNX) inched up to 1.8%, creating selling pressure on the high flying stocks of last year.

The recent decline comes after a stellar start to the new year. The stock gained 13% in one day on the first trading day of 2022 after the electric vehicle (EV) giant's fourth quarter vehicle deliveries smashed estimates.

The company delivered a record 308,600 cars during the last three months. Its deliveries shot up 87% year-over-year to 936,172 for all of 2021.

Tesla's (TSLA) record deliveries highlight a "trophy-case quarter," Wedbush managing director and analyst Dan Ives told Yahoo Finance last week.

"This was a jaw-dropper quarter," Ives said. "This just shows massive momentum in terms of the green tidal wave going into 2022."

Ives predicts Tesla will hit a $2 trillion market capitalization in about 18 months. The company hit $1 trillion in valuation for the first time in October of last year.

Ines is a markets reporter covering stocks from the floor of the New York Stock Exchange. Follow her on Twitter at @ines_ferre

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