Tesla (NASDAQ: TSLA) has not had a favorable first quarter and a half on Wall Street in 2021, but Wedbush Securities analyst and Tesla bull Dan Ives believes the stock will cost $1,000 per share in 12 months.
In 2021 so far, Tesla has lost around 20% of its value despite reporting two record-breaking quarters with deliveries and production numbers. Q4 2020 and Q1 2021 gave Tesla their largest three-month periods in company history and extended the automaker’s profitability streak to six and seven consecutive quarters.
Despite the dip in value this year that has affected Tesla, Ives still remains extremely bullish on the stock, predicting a $1,000 price point by this time in 2022.
“I think a year from now, I think we’re looking at a $1,000 stock,” Ives said in an interview with CNBC. “Because, to me, obviously, we’re going through chip shortages, China numbers for April, which we call an unmitigated disaster, it’s just one month. I think if we go out to the green tidal wave, despite all the noise, we’re looking at a stock that a year from now that is $1,000.”
“We do not wave the white flag on the Tesla bull thesis,” Ives concluded.
As the first five months of 2021 come to a close, Tesla investors wonder what it will take for the stock to take an upturn. In the coming months, there are several new developments that Tesla will likely fulfill that should increase the stock’s outlook. These include Model S Plaid Powertrain deliveries (which could eventually lead to another record-setting quarter), as CEO Elon Musk announced will take place on June 3rd with a special delivery event, the release of the Full Self-Driving version 9 Beta release, the possible opening of Giga Berlin, and the eventual rollout of 4680 battery cells that will increase power, range, and performance while limiting cost.
Tech stocks in general have had a tumultuous 2021 in what Ives describes as a “dip” and not a “slide.”
“We continue our multi-year bull thesis on tech. I think the second half of , tech stocks were up 15 or 20 percent,” Ives said. “So I view this as a near-term pullback, not the start of a secular slide or trend. We do not throw in the white towel on our bull tech thesis.”
Ives is ranked #92 out of 7,517 analysts and holds a success rate of 66% with an average return of 29.4%, according to TipRanks. He holds a buy rating for TSLA stock.
At the time of writing, Tesla shares were up more than 2.5%, trading at around $577.60.
Dan Ives says he is not throwing in the white towel on tech stocks. “I view this as a dip; we continue our multi-year bull thesis in tech.” He projects a 15% to 20% increase for tech stocks in the second half of the year. https://t.co/boFUHCbCH8 pic.twitter.com/j7vE3QkMdh
— CNBC (@CNBC) May 20, 2021
Disclosure: Joey Klender is a TSLA Shareholder.