Tesla Inc. has been making waves in the electric vehicle (EV) market with its recent announcements, and investor Dan Ives of Wedbush Securities is optimistic about the company’s future. Ives believes that the launch of affordable models, such as the lower-priced Model Y and Model 3 trims, represents a crucial step towards achieving a quarterly delivery rate of 500,000 units.
Lower-Priced Model: First Step Towards 500K Deliveries
Ives notes that while the launch of the affordable models is a positive development, the price point may not be low enough to make a significant impact. The affordable Model Y and Model 3 trims boast a similar price point to the already-available variants with the EV credit, which could pose a challenge. Despite this, Ives remains bullish on the company’s stock performance, citing the launch of the lower-cost model as a key factor in achieving the desired delivery rate.
FSD V14.1: A Game-Changer for Tesla
The latest update to Tesla’s Full Self-Driving (FSD) system, V14.1, has also been hailed as a significant improvement. The updated system promises fewer interventions and new arrival options for parking in streets, garages, and more. Ives believes that this update, combined with the launch of affordable models, could help Tesla reach a $2 trillion market cap by early 2026. He also predicts that the company’s autonomous and robotics roadmap will drive significant growth, with the potential for a $3 trillion market cap by the end of 2026.
Tesla’s Robotics and AI Push
Ives has previously stated that autonomous driving and robotics present a trillion-dollar market opportunity for Tesla. The company has recently begun its push towards AI and robots with its Master Plan IV, which includes the development of the Optimus robot. This move is seen as a key factor in driving growth and increasing the company’s market value.
Analysts Criticize Tesla for Affordable Models
Not all analysts are optimistic about Tesla’s affordable models, however. Some have criticized the company for releasing models that offer fewer features for the price. Gary Black of Future Fund LLC has stated that the models won’t sell, while Ross Gerber, co-founder of Gerber Kawasaki, has cautioned people against buying Tesla vehicles. Despite these criticisms, Ives remains confident in Tesla’s ability to achieve its goals and drive significant growth in the EV market.
Market Performance and Predictions
Tesla’s stock has been performing well in recent months, with a favorable price trend in the short, medium, and long term. Ives maintains an “Outperform” rating and a $600 price target for Tesla, citing the company’s strong momentum, growth, and quality metrics. However, he notes that the company’s value metric is currently poor, which could be a concern for some investors.
Overall, Ives believes that Tesla is on the path to achieving significant growth and reaching a $2 trillion market cap. The launch of affordable models and the update to the FSD system are seen as key factors in driving this growth, and the company’s push towards AI and robots is expected to play a major role in increasing its market value.