Wedbush predicts that Tesla will regain its $1 trillion market capitalization in the coming year. According to tech analyst Dan Ives, who raised his price target for the electric vehicle (EV) manufacturer from $310 to $350 per share on Thursday, Elon Musk’s aggressive pricing strategy appears to be a strategic move.
Ives anticipates Tesla’s total valuation surpassing $1 trillion again by 2024, driven by the benefits derived from Musk’s pricing strategy. Despite growing skepticism, Ives remains bullish on Tesla’s prospects, citing the company’s ability to set new delivery records in the first and second quarters of 2023, albeit at the expense of profit margins due to price cuts.
The analyst highlights Tesla’s rally in 2023, attributing it to strengthening demand, the AI investing trend, and market expectations of a forthcoming interest rate cut by the Federal Reserve. However, Tesla would still need to add approximately $190 billion in market cap to reach the trillion-dollar mark it last held in April 2022.
Ives identifies the rollout of the Cybertruck and the upcoming launch of the affordable “Model 2” as additional growth drivers for Tesla in the coming year. If Tesla achieves a $1 trillion market cap, it would join the ranks of Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, and state-owned Saudi oil giant Aramco as one of the world’s few companies with a thirteen-figure valuation.
