Tesla's Epic Comeback: Why Analysts Are Buzzing About a Major Price Surge
Tesla stock (NASDAQ: TSLA) is galloping back into the limelight. Both Morgan Stanley and Wedbush analysts are singing high praises, and for good reason.
In just five days, Tesla shares shot up by a whopping 26%, almost touching their highest value this year. This explosive growth is music to the ears of Tesla bulls, especially following a stellar Q2 performance and an impressive showcase in the energy division.
The Musk Mojo Returns
Wedbush analyst Dan Ives is particularly upbeat. Witnessing Tesla's meteoric rise, he has adjusted his price target from $275 to $300, signaling what he describes as a 'major turning point.'
Leading this charge were the Model 3 and Model Y, with Tesla exceeding delivery expectations by nearly 6,000 units. Ives contends that bullish momentum isn't just about cars; it’s about Tesla being 'the most undervalued AI play in the market.'
As Robotaxi Day approaches on August 8, Ives predicts this event could be a 'historical' moment, paving the way for Full Self-Driving (FSD) and an autonomous future.
Setting Sights on $400
Not stopping there, Ives and Wedbush have also revised their bull case scenario for Tesla stock, eyeing a lofty $400 target. This scenario is heavily contingent on Tesla cracking the code to full autonomy.
In Ives' words, 'In a bull case scenario, the Tesla FSD piece could be worth $1 trillion alone.' He underscores Tesla's potential to be more than just an automaker, highlighting its role as an AI and robotics powerhouse.
Wedbush’s optimistic outlook is further bolstered by the belief that 'the worst is in the rear view mirror' as Tesla progresses through 2024. With significant hurdles like Elon Musk’s pay package dilemma resolved and visible growth since Q1, investor sentiment is on an upswing.
Yet, Tesla is not out of the woods entirely. Year-over-year delivery reductions still loom, but the company is countering this narrative by framing it as being 'between two waves of growth.' Future successes hinge on executing their next-gen platform and Robotaxi vision.
Thus, despite some lingering concerns, Wedbush remains bullish, upholding an 'Outperform' rating and elevating their price target from $275 to $300.