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the bears are out Tesla (NASDAQ:TSLA) These days, there are constant concerns about weak demand and increased competition.
But if these arguments sound familiar, that’s because they are. Looking back at the first few months of 2023, Wedbush analyst Daniel Ives, a 5-star rated analyst ranked in the top 2% of Wall Street stock experts, says that the general consensus on Tesla at the start of the year is We were reminded that the bearish argument revolved around: The idea is that demand is declining and competition is intensifying overall.
“Instead,” Ives says, “Musk has made poker moves over the years, driving down prices and driving volumes globally, especially in China, with an impressive 1.8 million sales in 2023.” It should be within range.”
But achieving these volumes was costly, and the company’s profit margins took a hit. But heading into 2024, this remains a “major hot button issue” for investors, says Ives, who believes the issue is easing. “Right now, margins are stable, and we believe GM Automotive should return to and rise above the important 20% level in 2024,” he said.
Problems with Chinese demand are also improving, and the “Category 5 storm” that hit Tesla earlier this year is fading into the background. Tesla is currently raising prices, seeing “steady demand” in this key region, and Ives expects Tesla sales volume in China to “achieve a new record” in the fourth quarter. .
Ives believes 2.2 million to 2.3 million units in 2024, or the equivalent of 25% to 30% year-on-year unit growth, is “very achievable.” Sales of the Model Y in China and Europe are providing support, and there is potential for further upside.
Looking further ahead, while it is true that global EV demand is “obviously moderating,” this massive auto industry transformation is still in its early stages, with around 20% of cars expected to be EVs by 2030. It should also be noted that Mr. Ives estimates that Tesla takes the lead
But it’s not just cars that are driving Ives’ bullish theory. Analysts believe the Street newspapers are comparing Tesla to another company once led by an outspoken CEO and are not looking at the bigger picture.
“Tesla’s ‘golden vision’ is now monetizing the Supercharger network with batteries and AI/FSD, and then adding to Tesla’s overall story,” Ives summarized. “We’re looking at Tesla like Apple was in 2008-2009 because Cupertino was just starting to monetize its services and the golden ecosystem and the Street wasn’t seeing a broader golden vision at the time. We think it’s Tesla.”
Given this, Ives believes the time will come when a new price target will be set. Therefore, his target has changed from his $310 to $350, suggesting the stock has room to grow by up to 41% in his one year. Ives maintains his rating of Outperform (i.e. Buy). (Click here to see Ives’ track record)
However, not everything is so bullish. The Street’s average target price is $243.59, considering the stock will remain in a narrow range for now. In terms of ratings, the stock claims a Moderate Buy consensus rating, based on 12 Buys, 13 Holds, and 5 Sells. (look Tesla stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
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