Check out the companies making headlines in premarket trading: Tesla — The electric vehicle stock jumped nearly 3% after Morgan Stanley's Adam Jonas named embattled Tesla a new top pick in U.S. autos, with expectations of a roughly 50% bounce in store. Southwest Airlines — Shares slid 2% after JPMorgan downgraded the airline carrier to an underweight rating from neutral. Analyst Jamie Baker wrote that the stock's valuation was too high, and that he "remained convinced that Southwest's best margin and ROIC [return on invested capital] days lie in the past." Crypto exchanges — Shares of Coinbase and Robinhood jumped 9% and 8%, respectively, after President Donald Trump over the weekend gave new details on the widely anticipated U.S. strategic crypto reserve . In addition to bitcoin, he announced it will also include ether as well as smaller, higher-risk assets XRP, Solana's SOL token and Cardano's ADA. MicroStrategy climbed 13%. Allegro MicroSystems — Shares rallied 15% after Bloomberg , citing people familiar with the matter, said the chipmaker has drawn takeover interest from ON Semiconductor . Other potential suitors interested in expanding their automotive capabilities could also emerge, the report said. Shares of ON Semiconductor gained about 1%. Capri Holdings — Shares jumped almost 8% following a Bloomberg report , citing people familiar, that said Prada could soon close a deal to buy Versace from luxury fashion house Capri for an agreed-upon price of nearly 1.5 billion euros, or roughly $1.6 billion. The deal could close this month, the news outlet reported. Aurora Innovation — Shares rose nearly 9% after Morgan Stanley initiated coverage on the stock with an overweight rating. The firm believes autonomous trucking ultimately provides a "transformational" earnings opportunity and that Aurora Innovation looks to be in a "prime" position to benefit. AppLovin — Shares gained nearly 6% after the mobile advertising company disclosed changes to its buyback program. Mosaic Company — Shares of the agricultural chemicals company rose nearly 3% following an upgrade to overweight from neutral at JPMorgan. The investment firm said prices for Mosaic's key fertilizer categories are set to rise in 2025. Chipotle Mexican Grill — Shares of the restaurant chain gained 2% following an upgrade to overweight at Morgan Stanley, with the firm noting that stock is currently trading at an attractive entry point for investors. SanDisk — Shares added 2% after Morgan Stanley initiated coverage of the computer technology company with an overweight rating. While the firm expects a "tough near term," it believes the stock can rally 90% in 12 months. Okta — Shares gained 2% ahead of the identity and access management company's fiscal fourth-quarter earnings results, set to release Monday after the close. — CNBC's Sean Conlon, Brian Evans, Michelle Fox, Lisa Han, Tanaya Macheel and Jesse Pound contributed reporting.
