Tesla bull Dan Ives announced that Wedbush Securities raised TSLA’s price target from $275 to $300 after a positive Q2 2024 delivery report.
Ives added that Wedbush Securities’ new bull case scenario is a price target of $400 by 2025. The firm maintains an Outperform rating on TSLA.
“We believe the demand story has made a significant turn for the positive heading into 2H/2025. Tesla AI story could be worth $1 trillion+and the most undervalued AI name in our view,” commented Ives in an X post.
Tesla reported delivering 443,956 cars in the second quarter, from April to June 2024. The company beat Wall Street consensus, which estimated that Tesla would deliver around 438,019 units.
Ives believes Tesla’s demand in China is rebounding, resulting in a positive delivery report for the second quarter. Wedbush Securities predicts that Tesla will maintain its current momentum and achieve its goal of reaching an annual production rate of 2 million units.
We are raising our price target on Tesla from $275 to $300; new bull case of $400. We believe the Tesla demand story has made a significant turn for the positive heading into 2H/2025. Tesla AI story could be worth $1 trillion+ and is the most undervalued AI name in our view🐂🍿🏆
— Dan Ives (@DivesTech) July 2, 2024
The American automaker faced some challenges in the first quarter as many car manufacturers noticed a decline in electric vehicle demand. Even Tesla addressed concerns about EV demand in its first quarter earnings call.
“As people have seen, the EV adoption rate globally is under pressure, and a lot of other auto manufacturers are pulling back on EVs and pursuing plugin hybrids instead. We believe this is not the right strategy, and electric vehicles will ultimately dominate the market. Despite these challenges, the Tesla team did a great job executing in a tough environment,” said Musk during Tesla’s Q1 2024 earnings call.
Tesla deliveries saw an 8.5% decline year-over-year in Q1 2024. However, Tesla’s Q2 2024 delivery figures hint at a positive outlook for the company’s performance this year.
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