After a challenging 2022, Tesla’s stock (NASDAQ: TSLA) orchestrated a remarkable comeback in 2023, fueled by gradual improvements in macroeconomic conditions and a heightened investor appetite for major tech players.
While the first half of the year witnessed substantial gains, the latter half brought its own set of challenges. Following the release of Tesla’s latest earnings report in October, the stock faced a notable slump, attributed to declining profit margins resulting from a series of price cuts announced throughout the year.
However, recent weeks have seen TSLA resume its upward trajectory, buoyed by a broader market rally and increasing expectations of interest rate cuts in 2024. Notably, a respected analyst predicts Tesla’s fundamentals will also improve in the coming months, envisioning the EV giant as a trillion-dollar business by 2024.
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Wedbush raises TSLA price target to $350
On Friday, December 22, Wedbush analyst Dan Ives raised the price target on Tesla stock by around 13% from $310 to $350. The new price target implies a 37% surge from TSLA’s current stock price.
Citing an “increasingly bullish view of further EV share gains and margin stabilization in 2024,” Wedbush expects Tesla to begin a new growth cycle, which could propel its market cap to a whopping $1 trillion in 2024, the strategist said.
Ives said that the bear narrative for Tesla heading into was based on concerns over waning demand and intensifying competition in the EV market.
“Instead Musk made a poker move for the ages and cut prices globally with China front and center.”– he wrote in a note.
Apart from margin improvements, Ives said that the rollout of the Cybertruck and the imminent launch of the Model 2 vehicle are also factors that will likely propel TSLA in 2024.
Tesla stock price analysis
Tesla’s shares opened 0.75% higher on Friday, trading at $256.4 at the time of writing.
The EV stock rose around 1% over the past five sessions and more than 9.5% on the month.
Year-to-date, it’s up over 137% and is one of the best-performing S&P 500 stocks in 2023.
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