Tesla, Inc. (NASDAQ:TSLA) received a price target boost even as the stock struggles to find any decent momentum to break out of its current trading range.
The Tesla Analyst: Wedbush analyst Daniel Ives reiterated an Outperform rating on Tesla shares and raised the price target from $310 to $350.
The Tesla Thesis: The optimism over Tesla stock is based on the increasingly bullish view of further electric vehicle share gains and margin stabilization in 2024, Ives said in a note. The analyst said he sees Tesla hitting the $1 trillion market cap in 2024 despite Wall Street’s skepticism.
Tesla’s market cap peaked at $1.24 trillion in early January 2022 and has fallen sharply since then amid the broader market retreat during the year. At Thursday’s close, the EV pioneer’s market cap stood at $809.04 billion.
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The Street’s bear narrative for Tesla in 2023 was erosion in demand and intensifying competition across the board, the analyst said. “Instead Musk made a poker move for the ages and cut prices globally with China front and center to catalyze volumes/units which should now impressively be in the 1.8 million range for 2023,” Ives said.
Additionally, the company has “navigated the Category 5 storm in China well,” Ives said, adding that he expects fourth-quarter volume in China to hit another record. Tesla’s weekly EV registration in China in the recent reporting week rose strongly, keeping it on track for a record performance in the country.
See Also: Everything You Need To Know About Tesla Stock
For 2024, the analyst estimates 25%-30% year-over-year unit-volume growth, pushing units in the 2.2 million to 2.3 million range. He does not rule out upside surprises, driven by Model Y sales in China and Europe.
“While overall EV demand has clearly moderated globally we are still in the early days of this massive transformation with Tesla leading the way as we estimate by 2030 roughly 20% of autos will be EV based, Ives said.
Also benefiting Tesla would be the tempering EV transformation of General Motors Corp. (NYSE:GM) and Ford Motor Co. (NYSE:F), he added. Ford, for one, is rumored to slash its F-150 Lightning production, beginning in 2024.
Tesla will likely launch a sub-$30,000 EV over the next six to nine months, Ives said.
Looking ahead, the analyst…
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