Tesla (TSLA) sprung a bit of a surprise on Wall Street last week. Expectations ahead of its Q2 deliveries readout were low, but the EV leader managed to beat the forecasts.
The outperformance, says Wedbush analyst Daniel Ives, is indicative of the demand story finally turning. “With the majority of price cuts in the rear-view mirror and demand stabilization globally for EVs especially in China, we believe Tesla’s march towards 2 million units annual trajectory should be reached over the coming quarters with clear momentum and easier comps for 2025,” the analyst said.
The “mini rebound” seen in China during the quarter is of big importance and creates momentum for the rest of the year. That said, the real push is set to come from elsewhere. The “historical” Robotaxi Day is coming up on August 8 and is an event Ives considers a “near-term catalyst.”
Here, the company will “lay the yellow brick road to FSD (full self-driving) and an autonomous future.” As a continuation of Tesla’s longstanding commitment to the FSD thesis and the initial talk of robotaxis in 2019, it is now “official” that robotaxis will be added to Tesla’s portfolio. Musk has previously stated that Tesla will create a car without human controls, envisioning a future where FSD achieves complete autonomy for taxi and driverless applications. “We believe in a bull case scenario the Tesla FSD piece/segment could be worth $1 trillion alone,” Ives went on to say on the matter. “We continue to believe that Tesla is more of an AI and robotics play than a traditional car company.”
In fact, the analyst thinks the Street has yet to recognize Tesla is the “most undervalued AI play in the market.” As such, Ives maintained an Outperform (i.e., Buy) rating on the shares along with a $300 price target. The implication for investors? Upside of 19% from current levels. (To watch Ives’ track record, click here)
Ives is a fully-fledged TSLA bull but many on the Street don’t share in his optimism; based on a mix of 14 Holds, 13 Buys and 8 Sells, the stock claims a Hold consensus rating. Moreover, the average target is a downbeat one; at $184.41, the figure implies shares are currently over valued by 27%. (See Tesla stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
