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Tesla’s Long-Term Potential in Autonomous Vehicles Overshadows Short-Term Challenges

Tesla’s Long-Term Potential in Autonomous Vehicles Overshadows Short-Term Challenges

Wedbush analyst Daniel Ives maintained a Buy rating on Tesla (TSLAResearch Report) today and set a price target of $550.00.

Daniel Ives has given his Buy rating due to a combination of factors that highlight Tesla’s potential despite recent challenges. He acknowledges the weaker than expected first-quarter delivery numbers, which fell short of market estimates due to various pressures in Europe, the US, and China. The production disruptions caused by the Model Y refresh and the negative impact of brand-related issues are noted as significant hurdles.
However, Ives remains optimistic about Tesla’s long-term prospects, particularly in the autonomous vehicle market. He believes that Tesla is poised to dominate this transformative sector, especially with the anticipated launch of unsupervised Full Self-Driving (FSD) technology. While he emphasizes the need for Elon Musk to manage the ongoing brand crisis and political distractions, Ives maintains a bullish outlook on Tesla’s future, valuing the autonomous opportunity at a substantial $1 trillion.

According to TipRanks, Ives is a 2-star analyst with an average return of 0.1% and a 45.07% success rate. Ives covers the Technology sector, focusing on stocks such as Palantir Technologies, Apple, and Check Point.

In another report released today, RBC Capital also maintained a Buy rating on the stock with a $320.00 price target.

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