Amid a turbulent market, Dan Ives of Wedbush Securities stands firm on his optimistic outlook for Tesla Inc.
What Happened: Ives expressed continued optimism for Tesla Inc. despite current market headwinds during an interview on Bloomberg Surveillance on Friday.
"Many times we've been in these white knuckle periods - to me, this is not the end of the growth story. I believe this is a growth story with AI, FSD. They are still going to have a significant piece on the horizon" he said.
According to Ives, Tesla's trajectory includes scaling up to 2.5 to 3 million units in the coming years, increasing market share, and improving financial metrics such as earnings per share (EPS) growth. He views the current period as a temporary phase before the company's resurgence.
Why It Matters: Tesla has faced several obstacles, including increased competition, supply chain issues, and market volatility. However, Ives' outlook suggests confidence in the electric vehicle maker's ability to navigate these challenges and continue its growth trajectory, which could be significant for investors and the industry.
Previously, Ives had stated that "now is NOT the time to throw in the towel" on Tesla, citing the company's AI and FSD capabilities as potential catalysts for driving its market capitalization over $1 trillion. Despite a slower start to the year, the firm sees the possibility of Tesla reaching 2.1 million units in 2024.
Following a recent downgrade, Ives commented on the shift in market sentiment, observing that even New York City cab drivers have a bearish view of Tesla. Yet, he remains steadfast in his belief that the current sentiment will be looked back on as a prime buying opportunity.
As of Friday, Tesla's stock is trading at $162.7, slightly above its previous close of $162.5, with a 52-week high of $299.29 and a low of $152.37, according to Benzinga Pro.
