Tesla Stock Rebounds: Here’s What Daniel Ives Predicts Ahead

Tesla Stock Rebounds: Here’s What Daniel Ives Predicts Ahead

  • 25.03.2025 06:20
  • markets.businessinsider.com
  • Keywords: Stock Market, Tesla

Tesla shares are rebounding as CEO Elon Musk addresses internal concerns in a rare all-hands meeting. Analyst Daniel Ives predicts strong growth, driven by upcoming products like the Cybercab and Model Y, with a $550 price target for Tesla stock.

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Analyst rating: Neutral

The article discusses Tesla's stock rebound and predicts future growth under Elon Musk's leadership. It mentions challenges like declining sales and protests but highlights positive developments such as the completion of the first Optimus robot and production timelines for Cybercab and Model Y.

Context

Business Insights and Market Implications Analysis

Market Performance

  • Tesla (TSLA) shares rebounded ~12% in recent sessions, trimming recent losses amid global sales concerns.
  • The stock has faced pressure due to declining sales and protests at dealerships over Elon Musk's polarizing actions.

Competitive Landscape

  • Cybercab production: Cybercabs are expected to be produced every 5 seconds (vs. 35 seconds for Model Y), with volumes targeting 200k-300k annually by 2026.
  • Model Y: Projected to become the best-selling car globally in 2025, marking its third consecutive year of leadership.

Strategic Initiatives

  • Optimus robot: First prototype completed in Fremont, with higher production volumes anticipated by 2026.
  • Tesla Semi factory: Construction on schedule to finish this year.
  • Technological advancements: Updates on gigacasting, 4680 battery cells, and supercomputing initiatives.

Analyst Predictions

  • Wedbush analyst Daniel Ives sees Tesla's future as "the brightest it’s ever been," driven by autonomous tech, FSD, robotics, and innovation.
  • Valuation drivers: Ives estimates 90% of Tesla's valuation will be tied to autonomous and robotic technologies over the next three years.

Financial Projections

  • Ives rates TSLA as Outperform (Buy) with a $550 price target, implying an ~98% increase from current levels.
  • Street-high target suggests significant upside compared to the average analyst estimate of $335.32 (~20% upside).

Market Sentiment

  • Tesla currently holds a Neutral (Hold) consensus rating, with 14 Buys, 11 Holds, and 11 Sells from analysts.
  • Internal challenges, including employee morale and investor sentiment, are critical factors for future performance.

Long-Term Implications

  • Success of Cybercab production and Model Y sales will be key to Tesla's growth trajectory.
  • Regulatory and competitive dynamics in the autonomous vehicle and robotics sectors could impact long-term success.