Wedbush Analyst’s View on Tesla
Wedbush analyst Dan Ives recently shared insights on the downgrade of Tesla Inc. TSLA, painting a picture of prevailing bearish sentiment, extending even to New York City cab drivers. Despite this, he foresees a robust recovery for Tesla, accentuated by advancements in AI technology.
The Current Market Sentiment: Reflecting on the wave of bearish sentiment, Ives remains steadfast in his long-term optimism toward the electric vehicle (EV) powerhouse. He perceives the current pessimism as a ripe opportunity for investors to position themselves strategically for future gains.
“In six to nine months, we will look back at this period as an opportune moment to invest in Tesla over the next two to three years, especially with AI looming large on the horizon. As of now, it’s a chorus of skepticism, right down to the New York City cab driver,” he quipped on CNBC.
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The Significance: Tesla encountered turbulence as Wells Fargo revised its rating on the company from Equal Weight to Underweight, accompanied by a substantial downward adjustment in the price target. This revision stemmed from apprehensions surrounding disappointing deliveries, potential negative earnings revisions, and the erosion of Tesla’s luxury brand aura following price slashes.
Despite these hurdles, Ives underscored Tesla’s AI and Full Self-Driving (FSD) technologies’ capacity to propel the company’s market valuation beyond $1 trillion. He highlighted that the risk-reward equilibrium currently presents a tantalizing proposition, with Tesla’s AI and FSD systems making notable strides. In his view, “now is NOT the time to throw in the towel.”
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