It’s that time of the year again. This week, we will find out how many cars Tesla (NASDAQ:TSLA) sold in Q2. A key factor behind the recent negative sentiment toward EVs has been weakening demand, which will likely be a significant aspect of the upcoming report.
However, Wedbush analyst Daniel Ives believes the Q2 picture might not be that downbeat after all. From here on in, things should get decidedly rosier.
“We believe the China growth piece for Tesla is slowly turning around and saw a ‘mini rebound’ in 2Q which should help Tesla come close to the Street’s 435k units estimate,” Ives said. “Whisper numbers are lower in the 415k to 420k range as the Street’s core focus looking forward is a 2H unit recovery, price stabilization, China growth, and a historic Robotaxi Day August 8th held by Musk.”
It’s that last bit of information there that really counts, according to Ives. EV sales might be slow these days, but with the bulk of price cuts likely in the rear-view mirror, Ives thinks a rebound is due in the second half of they year yet the real catalyst for Tesla lies elsewhere. More specifically, in its Robotaxi endeavours, with the August event set to be a “key historical moment for the Tesla story.”
For Tesla to reach a $1 trillion+ valuation, it all depends on the autonomous and FSD vision taking shape. Based on the latest FSD v12.4 and the fact China FSD testing is underway, Ives believes Tesla is truly turning a corner.
“As part of Tesla’s long driven full self-drive thesis and the company’s first mentions of robotaxis in 2019, it is now official that robotaxi will become a part of the Tesla portfolio as Musk and Tesla get ready for the first Tesla robotaxi to be unveiled on August 8th,” the analyst summed up.
Conveying his confidence, Ives rates Tesla shares an Outperform (i.e., Buy), backed by a $275 price target. Should the figure be met, investors will be pocketing returns of ~31% a year from now. (To watch Ives’ track record, click here)
Ives is one of the Street’s most prominent TSLA bulls but not all are thinking along the same lines. The ratings break down into 14 Holds, 12 Buys and 8 Sells, all resulting in a Hold consensus rating. Moreover, the $182.1 average target factors in a one-year decline of 14.5% for the stock. (See Tesla stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
