The electric car maker's stock peaked in November 2021. Wedbush analysts say the following factors will determine whether it can reach that level again.
Tesla (TSLA.O) has been on a roll lately, nearly erasing its year-to-date stock losses in the past few weeks. While it's still far from its peak, some analysts see a path back to its stock price peak.
The stock closed up 6.5% on Wednesday, reaching $246.39, and surpassed its 2023 closing price in after-hours trading. The all-time high was $409 reached in November 2021.
Tesla's stock performance is closely tied to the fortunes of the electric vehicle industry, which peaked three years ago and then burst as demand began to slow and competition intensified.
However, the recent good news is that Tesla has entered the Jiangsu Provincial Government Vehicle Procurement Catalog, which means that the company's electric vehicles can be used as service vehicles for public institutions in Jiangsu.
But the industry's woes continue today, with once-promising startups struggling, such as Fisker, which has collapsed, and Rivian (RIVN.O), which needs a big boost from Volkswagen.
Wedbush analyst Dan Ives' team believes that future success may require the company to go beyond electric vehicles. Tesla CEO Elon Musk recently reclaimed the title of the world's richest man, and only needs a breakthrough in artificial intelligence to drive the stock higher.
"The key to Tesla stock is that the market recognizes that Tesla is the most undervalued AI investment in the market," said Wedbush analyst Dan Ives. "Tesla is more of an AI and robotics company than a traditional auto company. Now, the market is starting to look forward to August 8 as a key pivot date."
Wedbush raised its price target on Tesla stock from $275 to $300 on July 2, maintaining its "outperform" rating. But in its bull case, they believe the stock could rise to $400. They said Tesla's fully self-driving unit could be worth $1 trillion on its own.
Wedbush is very bullish on the stock. But if they believe Tesla's dark days are over, investors will also have a lot to celebrate.
The article is forwarded from: Jinshi Data
