Tesla Robotaxis No 'Magic Model' To Replace Sub-$30K EV, Says Analyst: 'Musk Needs To Give Clear Roadmap'
Portfolio Pulse from Shanthi Rexaline
Wedbush analyst Daniel Ives emphasized the importance of Tesla, Inc. (NASDAQ:TSLA) focusing on the development of the Model 2 vehicle, a sub-$30,000 electric vehicle, as a critical component for the company's future growth. Ives argued that relying on robotaxis as a replacement for the Model 2 would be a risky strategy and could negatively impact Tesla's growth narrative. He sees 60% of Tesla's future growth coming from the Model 2 and suggests that full autonomy for robotaxis may not be achieved until 2030. Despite the concerns, Ives remains long-term bullish on Tesla, maintaining an Outperform rating and a $300 price target for the stock.
April 12, 2024 | 5:52 am
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NEUTRAL IMPACT
Tesla's focus on developing the Model 2 and its strategy regarding robotaxis are crucial factors that could influence its stock price. Analyst Daniel Ives' comments highlight the importance of the Model 2 for Tesla's future growth and suggest that a shift away from this focus could negatively impact investor sentiment.
The analysis by Daniel Ives suggests that Tesla's future growth heavily relies on the success of the Model 2, indicating that any deviation from this plan, such as a premature focus on robotaxis, could be perceived negatively by the market. However, Ives' continued bullish stance and the $300 price target suggest that the current strategy, if adhered to, could still position Tesla favorably in the market. The neutral score reflects the uncertainty around Tesla's strategic decisions and their impact on the stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100