Wedbush analysts believe the upcoming “Tesla (NASDAQ:) AI Day” on August 8 will be a pivotal moment for the company, potentially propelling the stock towards a $1 trillion market cap. The company maintained an Outperform rating and a $275 price target on Tesla stock.
“We believe the August 8 robotaxi day will be a key historical moment for the Tesla story that we see as a near-term catalyst,” Wedbush said in a recent note. This optimism stems from recent developments, including the company’s advancements in its Full Self-Driving (FSD) technology and the upcoming unveiling of its first robotaxi.
Wedbush highlights CEO Elon Musk’s “strategic vision with FSD and Optimus” as a key factor in Tesla’s future success. They see the recent FSD v12.4 update and the start of FSD testing in China as positive signals. Their bull case valuation of $350 per share depends on Tesla finding success with FSD and autonomous driving.
The August 8 event is expected to be a big reveal, finally seeing Tesla’s long-discussed robotaxi concept come to fruition. “As part of Tesla’s long-term thesis on full self-driving cars,” Wedbush explains, “it is now official that robotaxis will become part of the Tesla portfolio.”
Wedbush recognizes some ongoing challenges, such as short-term demand fluctuations, especially in China.
However, they see signs of stabilization and believe that with China on board, a recovery in global demand is possible. They emphasize the importance of the second half of 2024 for Tesla’s turnaround, with much depending on strong execution by Musk and his team.
Overall, Wedbush views Tesla as a company with an attractive risk/reward profile. With August 8’s Robotaxi Day and a potential demand rebound on the horizon, they believe Tesla has positive catalysts in store.