Asian stocks have surged, with Japan’s Nikkei 225 index leading gains after Wall Street romped to records following the Federal Reserve’s big cut to interest rates.

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.

The Federal Reserve's closely followed overnight reverse-repo facility already has begun to reflect Wednesday's big interest-rate cut. Wall Street firms rushed to park extra cash overnight at the facility in the wake of the pandemic,