Electric vehicle maker Tesla (TSLA) won a new street-high price target from long-time bull Daniel Ives of Wedbush Securities. The top analyst said that the dark chapter for Tesla and CEO Elon Musk, which had created “brand damage and a black cloud over the story,” are now “in the rear-view mirror.”
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Ives lifted the price target on TSLA stock to $500 (from $350), implying an impressive 46.6% upside potential from current levels. TSLA stock is rising higher in pre-market trading on the news, up 1.3% at the time of writing.
Why Tesla’s Dark Days May be Over
Ives made a particular note of Musk’s renewed commitment to Tesla as CEO. He is optimistic about Musk leading Tesla into its next phase of autonomous and robotics future, with his days in the White House “now essentially over.” Furthermore, Ives acknowledged that Tesla needs to revive the demand for its Model Y in China and Europe, stating that there is still “some wood to chop to turn around.”
However, he says that investors are currently focusing on the artificial intelligence (AI) revolution that is “now coming to Tesla.” He is most likely referring to Tesla’s AI-driven full-self driving (FSD) and humanoid robot initiatives that are yet to reach the market. Following their launch, Ives believes that they will position Tesla as one of the best pure AI plays over the next decade.
Ives is highly encouraged by Tesla’s autonomous robotaxi launch in Austin this June, which he says will mark the beginning of the new era of growth for both Musk and the company. Not just Wedbush, but a majority of Tesla bulls are placing a high valuation on Tesla’s robotaxi and robotics future. With Musk deciding to step-back from DOGE, analysts and investors are now optimistic that the CEO will have his undivided attention on Tesla’s current and future business decisions.
Is Tesla a Buy, Hold, or Sell?
Not all analysts share Ives’ enthusiasm about Tesla’s stock trajectory. On TipRanks, TSLA stock has a Hold consensus rating based on 16 Buys, 10 Holds, and 11 Sell ratings. The average Tesla price target of $277.78 implies 18.6% downside potential from current levels. Year-to-date, TSLA stock has lost 15.6%.
Looking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.
Report an Issue