Contrary to what the recently re-approved pay package for the CEO, the billionaire Elon Musk might suggest, Tesla Motors (NASDAQ: TSLA) has not been doing exceptionally well in 2024.
Indeed, the electric vehicle (EV) firm has been struggling with demand since the start of the year – especially in the first quarter – and is, despite a more recent recovery, 25.56% in the red since January 2. Tesla’s price today stands at $185.02.
Such performance was accompanied by a significant fall in terms of market capitalization, and TSLA – which ended 2021 well above a valuation of $1 trillion – stands at a substantially lower $581.93 billion.
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Despite this, one prominent analyst, Wedbush’s Dan Ives, believes Tesla will only go up in the coming 12 months.
Top analyst reveals when Tesla will regain $1 trillion
Indeed, in a recent interview, Ives opined that Elon Musk’s EV maker is set to achieve a major milestone in the first quarter of 2025 and release a fairly low-cost vehicle, likely priced below $35,000, according to the expert.
Rumors of a new and cheaper Tesla vehicle – estimated to cost €25,000 ($27,000) or less – have been floating around for nearly a year, with the Berlin factory set as the plant that would produce it.
Additionally, Dan Ives believes that Tesla’s current demand issues are not something the firm will not overcome and that it is almost guaranteed to reclaim and exceed the $1 trillion market cap in the coming 12 months – likely in the first half of 2025.
Indeed, Tesla recently received a vicarious wind to its sales when it comes to demand in Europe, given the EU’s recent decision to significantly increase tariffs on Chinese electric vehicles.
The company will also likely benefit from the upcoming presidential elections, regardless of the winner.
President Biden promised to aid the EV industry, and former President Trump recently started floating the idea of cutting income tax and supplanting them with higher tariffs – a move that would, again, vicariously boost firms with domestic production, such as Tesla.
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Dan Ives is a prominent Tesla bull and has maintained a 12-month stock price target of $275 since the end of April – a target that would, in contrast to the most recent comments, indicate a market cap of $876 billion.
Morgan Stanley (NYSE: MS) currently boasts the street-high forecast for Tesla Motors’ stock at $310 – a target that would see TSLA’s market cap come just short of $1 trillion at $987 billion in 12 months’ time.
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