Why Q2 is 'a turning point' for Tesla: Analyst

Wedbush Securities has increased its price target on Tesla (TSLA) to $300 from $275 following the automaker's second quarter vehicle delivery performance, which beat expectations. Dan Ives, managing director and senior equity analyst at Wedbush Securities, offers insights into this outlook.

Ives acknowledges that the electric vehicle maker has had a "tough" six to nine months but says that Q2 is a "turning point." He emphasizes the potential of Tesla's artificial intelligence initiatives, suggesting that the "AI story alone is worth a trillion dollars at Tesla."

Regarding Tesla's autonomous vehicle ambitions, Ives highlights the ongoing development of the robotaxi. He anticipates that select cities could witness robotaxi deployments within the next 18 to 24 months, noting that "the technology is getting closer and closer."

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This post was written by Angel Smith

Video Transcript

I think the technology is getting closer and closer to, to something that when you look at the longer term Tesla story, I've never viewed as an auto company, disruptive tech.

Despite some of the issues they've been through from a demand perspective.

But take a step back, you're gonna have 678 million cars in the road Teslas that are now gonna have that autonomous FSD.

And I think it's very important to understand far through the trees.

This is essentially an A I robotics disruptive play.

But yet the bears in their hibernation caves will continue to say it's a car company.

Well, Dan, one of the big issues though for Tesla over the last several quarters has been the cars and demand and what they need to do in order to spur that demand, I, I guess has that part of the equation?

Has that part of the story changed at all or are we starting to see or do you think we're going to see a real pick up in ev demand and what's driving that?

Yeah, I think the price cuts 98% of that is in the rear view mirror.

So I think we've started to turn the corner there from a price cut perspective, demand stabilized China headwind.

Now that becomes a talent.

I think numbers go higher in the street and I think you start to now see it's not just about the robot tax a day and the start of that vision, but I think now growth returns to the Tesla story.

And even though they've been on the outside looking in of that mag seven party, I think they start to get back on the dance floor.

And Dan, what about the, the lower price models on the way?

Uh What do you think the price is?

How excited?

Do you think investors should be about that?

Yeah, Jo, and that's gonna be key to from a volume perspective.

I think 28,000 to 30 K is sort of where we see that and they'll give some hint of that on August 8th.

But that's key the volume game playing out in Tesla in terms of the broader volume, then it's the software and then ultimately, it's really the autonomous FSD.

That's the sum of the parts to how you start to get to that bull case 400 hours.