Despite all the recent concerns about persistent inflation and interest rates staying high for longer, the S&P 500 sits just 1% from its record closing high, and the Nasdaq Composite COMP posted its sixth record high of 2024 on Thursday , helped by the resurgence of Apple AAPL. .
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Additionally, Tesla TSLA shares, which rose 6% this week after fans bought a stock that flirted with its lowest price in 12 months, after falling about a third this year, are also supporting the technological barometer of late.
The good news for owners of Tesla stock is that long-term bull Dan Ives, an analyst at Wedbush, has a 12-month price target of $300, which closed Thursday just below $175.
The bad news is that the target is going in the wrong direction. It was recently $350, then $315 after Ives described Tesla’s latest results as a “train wreck” and the latest car sales numbers fell 9% from a year earlier .
And judging by Ives’ latest note, there appears to be a good chance he will further reduce his Tesla stock price target if founder and CEO Elon Musk doesn’t adequately communicate to investors during the April 23 conference call on first quarter results. can return to growth.
In particular, to weather what Ives calls a “Category 5 demand storm,” Musk must prioritize delivering a cheaper car as well as the robo-taxis that the entrepreneur has announced he will he would unveil on August 8.
“A key part of Tesla’s future growth is the Model 2 vehicle and its sub-$30,000 price point to drive mass demand globally in the electric vehicle landscape,” Ives said in a new note Thursday . “We estimate that around 60% of future growth over the next few years will come from Model 2, which was expected to hit the roads by late 2025 or early 2026.”
If Musk indicates that robo-taxis are the “magic model” to replace the Model 2, Ives said it would be a “negative debacle” for Tesla’s history.
With increased competition in China and a slowdown in global demand for electric vehicles, while Musk talks about developing AI outside of Tesla and issues like the dispute with Delaware over his compensation, “patience begins to burn out among investors,” says Ives.
Ives says Musk faces “a fork in the road” in guiding Tesla through this difficult time, otherwise the situation will get worse.
“Musk will have to quickly take the reins to regain confidence in the eyes of the street. It all starts with this next conference call and defining Tesla’s growth strategy in China (and globally) to reverse this negative demand trend,” says Ives.
The Wedbush analyst concludes by emphasizing that he remains optimistic in the long term but that Tesla’s future is a little murky at the moment. “Musk needs to give a clear roadmap and strategic vision for the street with Model 2 as the key element,” reiterates Ives.
Markets
U.S. stock index futures ES00 YM00 NQ00 are lower, with a technological lag, as benchmark Treasury yields BX:TMUBMUSD10Y fall several basis points. The DXY dollar is at a new four-month high, while CL.1 oil prices strengthen.
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The hum
U.S. economic data due Friday includes the Import Price Index for March at 8:30 a.m. ET, followed at 10 a.m. by the preliminary reading of consumer confidence for April.
Comments from Fed officials included Kansas City Fed President Jeffrey Schmid at 1 p.m. Atlanta Fed President Raphael Bostic at 2:30 p.m. and San Francisco Fed President Mary Daly at 3:30 p.m.
The corporate results season for the first quarter of 2024 begins, with the big financial stocks in the lead. So far, results from JPMorgan Chase JPM, down 2.6% and Wells Fargo WFC, down 1%, having not very well receivedbut Citigroup C is up 2% after revealing its figures.
Apple AAPL to be launched a new range of Macs as part of its AI push, according to a report.
The GC00 gold price has reached a new record nearly $2,400 an ounce amid concerns Iran could strike Israeli targets in coming days.
The dollar hit a new 34-year high against the yen USDJPY, near 153.4, as traders played chicken with possible intervention from the Japanese Finance Ministry.
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Table
Activity in capital markets has increased significantly since the Fed meeting in December, notes Torsten Sløk, chief economist at Apollo Group, with more investment-grade and high-yield debt issuance in January, February and March.
“Increased M&A activity, increased IPOs, tightening credit spreads and rising stock prices are all contributing to stronger GDP growth and higher inflation in the over the next few quarters,” explains Sløk.
Best Tickers
Here are the most active stock tickers on MarketWatch as of 6 a.m. Eastern Time.
Teleprinter | Security Name |
NVDA | Nvidia |
TSLA | You’re here |
AAPL | Apple |
GME | Stoppage of play |
AMZN | Amazon.com |
TSM | Semiconductor manufacturing in Taiwan |
NIO | Nio |
AMD | Advanced microsystems |
DJT | Trump Media and Technology |
AMC | AMC Entertainment |
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