is on a good run, having erased the stock’s losses for the year over the past few weeks. It’s still nowhere near its peak, but some analysts see a way to get back to it.
The stock closed 6.5% higher in Wednesday’s shortened trading session, bringing the shares to $246.39 and moved above where it finished 2023 in after-hours trading. The record high was reached way back in November 2021, at $409.
The path of Tesla shares neatly tracks the fortunes of the electric-vehicle industry. It peaked three years ago and then the bubble burst as demand started to soften and competition heated up. Competition from Chinese producers led to price wars.
However, in positive news today, Tesla was included on a government procurement list in China for the first time-for the Jiangsu province. It means the company’s EVs can be used there as service cars by public organizations.
But the slog continues today for the sector, with once-promising start-ups struggling—such as
going under and
needing a big lifeline from
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Success in the future may require the company to move beyond EVs, according to Wedbush analysts led by Dan Ives. Tesla CEO Elon Musk, who recently regained the crown of world’s richest person, just needs a breakthrough in artificial intelligence to push the stock higher. He’ll be showing investors his progress on Robotaxi day, which is coming up next month.
“The key for Tesla’s stock is the Street recognizing that Tesla is the most undervalued AI play in the market,” said Wedbush analysts led by Dan Ives. “Tesla is more of an AI and robotics play than a traditional car company. Now the rubber meets the road as the Street anticipates Aug. 8 as a key linchpin day.”
Wedbush raised its Tesla stock target price to $300 from $275 on July 2, maintaining its Outperform rating. But in its bull-case scenario, it sees shares going to $400. Tesla’s full self driving unit could be worth $1 trillion on its own, they said.
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Wedbush is famously optimistic about stocks. But if its right that Tesla’s dark days are behind it, investors will also have much to cheer.
Write to Brian Swint at brian.swint@barrons.com
