Wedbush analyst Dan Ives attributes the recent rally in Tesla (TSLA) shares to billionaire Elon Musk’s all-hands meeting last week that “sent a much-needed positive signal to employees and investors.”
TSLA looks poised to extend its gains further now that Musk is back in the driving seat, he said in an interview with Fortune on Wednesday.
Ives expects the company’s chief executive to “step back” a little from the Department of Government Efficiency (DOGE) to redirect his focus on Tesla in the coming weeks, which may translate to continued momentum in the EV stock.
Musk Sees a Bright Future for Tesla Stock
Last week, the billionaire advised Tesla employees against selling the stock since “the future is incredibly bright and exciting.”
The electric vehicle behemoth, he added, will accomplish what “no one has ever dreamed of.”
Musk’s reassurance proved sufficient for Wedbush Securities to reiterate its “Outperform” rating on Tesla stock. Ives currently has a $550 price target on TSLA that indicates potential upside of more than 100% from here.
Ives agreed that Musk’s recent involvement in politics has damaged the brand’s reputation, but said Tesla still remains top of mind for many buyers interested in switching to an electric vehicle.
His view is in line with the latest Canaccord survey.
TSLA Shares May Have Bottomed
Despite the recent surge, TSLA is down more than 35% versus its year-to-date high, indicating much of the bad news is already baked into the company’s stock price.
That’s what made New Street analyst Pierre Ferragu favor buying Tesla stock on the weakness in his research note this week.
Ferragu is bullish since it’s not the first time that Musk’s actions are making headlines and adding to the pressure on Tesla stock price – but Tesla has always managed to claw its way back to the top.
More importantly, the New Street analyst said Tesla is grappling with a sales decline in China due to issues on the supply side, while demand in the world’s largest auto market continues to be strong.
Wall Street Hasn’t Bailed on Tesla Yet
The historical ability of Tesla shares to come back stronger after a significant hit is what’s keeping analysts from throwing in the towel on TSLA.
The consensus “Hold” rating on Tesla stock is currently coupled with a mean target of roughly $339 that indicates potential upside of nearly 27% from current levels.
