Wedbush analyst Dan Ives recently commented on the recent downgrade of Tesla Inc., suggesting a shift in market sentiment. Ives noted the pervasive bearish outlook, even among New York City cab drivers, but predicted a significant rebound for Tesla in the coming years, especially with advancements in AI technology.
On Wednesday, Ives acknowledged the current “piling on” by bears emerging “out of hibernation,” yet he maintains a long-term bullish stance on the electric vehicle (EV) giant. He believes that the current sentiment will be viewed retrospectively as a prime buying opportunity for investors.
“When you look through in six to nine months, we are going to look at this as more of a golden buying opportunity for Tesla over the next two to three years, especially with AI, right in time to throw in the white towel. But for now, we all know that even the New York City cab driver is bearish on Tesla,” he told CNBC.
Despite facing headwinds such as a recent downgrade by Wells Fargo, Ives emphasized the potential of Tesla’s AI and Full Self-Driving (FSD) technology to elevate the company’s market capitalization to over $1 trillion. He pointed out that the risk/reward at current levels is “extremely compelling,” with Tesla’s AI and FSD making major strides. Ives emphasized that “now is NOT the time to throw in the towel.”
The recent downgrade by Wells Fargo was driven by concerns over disappointing deliveries, potential negative earnings revisions, and a loss of luxury brand premium following price cuts. However, Ives remains optimistic about Tesla’s future prospects, especially with advancements in AI technology.
In conclusion, despite the current challenges facing Tesla, analysts like Dan Ives believe in the long-term potential of the company, particularly with its advancements in AI and FSD technology. Investors should carefully consider these factors when making decisions about their Tesla investments.
