According to Wedbush analyst Dan Ives, the negative sentiment surrounding Tesla's stock is exaggerated and out of proportion. Ives remains optimistic about Tesla's ability to meet its delivery targets, projecting a base goal of 2.1 million units with a stretch target of 2.2 million for the year.
Despite challenges such as the slowdown in demand and production disruptions, particularly the shutdown of the German factory due to unforeseen circumstances, Ives believes that Tesla's long-term growth prospects remain strong. He points to factors such as cost efficiencies in battery production, the upcoming launch of a sub-$30,000 Model 2, and advancements in autonomous driving technology as reasons for optimism.
While acknowledging the near-term challenges, Ives emphasizes the compelling risk/reward profile of Tesla's stock at current levels. He highlights the potential for Tesla's valuation to exceed $1 trillion as the company continues to make strides in artificial intelligence and Full Self-Driving technology.
Furthermore, Ives notes that the Tesla Board is taking steps to address investor concerns, including revising compensation packages and potentially relocating the company's headquarters to Texas. Despite the headwinds, Ives maintains confidence in Tesla's long-term growth trajectory and sees the current negativity surrounding the stock as overblown.
-------The article excerpted from TESLARATI.