Tesla will be a trillion dollar stock in 2024, Wedbush says

It’s been a good year for Tesla (Tesla Stock Quote, Chart, News, Analysts, Financials NASDAQ:TSLA) but it’s about to get even better.

That’s the opinion of Wedbush analyst Dan Ives who thinks the stocks’ market cap will rise from its current value of just over $800-billion to more than a trillion in 2024.

As reported by the Globe and Mail December 22, the analyst raised his price target on TSLA from $310 to $350 while maintaining his “outperform”” rating.

“For 2024 we believe 25-30-per-cent year-over-year unit growth is very achievable putting units in the 2.2 million to 2.3 million range with upside surprises likely in the cards driven by Model Y sales in China and Europe,” he wrote. “While overall EV demand has clearly moderated globally we are still in the early days of this massive transformation with Tesla leading the way as we estimate by 2030 roughly 20 per cent of autos will be EV based. Also noteworthy is that as Detroit stalwarts GM and Ford among others appear to be tempering the EV transformation, Tesla is now doubling down with Cybertruck and we expect another sub $30k vehicle to be announced over the next 6 to 9 months.”

Ives says the negative storyline that plagued Tesla through much of the early part of this year has dissipated.

“The Category 5 storm that hit Tesla early in 2023 appears to have passed with the company now raising prices and seeing steady demand in (China),” he said. “The Street bear narrative for Tesla heading into 2023 was demand was eroding and competition was increasing across the board. Instead Musk made a poker move for the ages and cut prices globally with China front and center to catalyze volumes/units which should now impressively be in the 1.8 million range for 2023.”

The analyst invoked a legendary company and stock in comparison to TSLA.

“The big debate on the Street is around the price cuts and what the path looks like ahead into 2024 for Tesla with margins the key hot button issue among investors,” Ives said. “To this point we believe margins have now stabilized and should move up from these levels with Auto GM heading back above the key 20-per-cent threshold during the course of 2024. We view Tesla where Apple was in the 2008/2009 period as Cupertino was just starting to monetize its services and golden ecosystem with the Street not seeing the broader golden vision at the time. We believe FSD and the Supercharger network are worth an incremental $75 per share to the Tesla story over the next 12 to 18 months and the Street will start to factor this dynamic into the stock as Tesla executes on its strategic vision with the next phase of the growth story abound.”