Wedbush: Musk enters "wartime CEO mode" maintains bullish rating on Tesla
Wedbush Securities reiterated its "Outperform" rating on Tesla, believing that investors should focus on long-term value. Analyst Dan Ives pointed out that Tesla is leading in the autonomous driving market and is expected to expand to 30 to 35 cities in the coming year. Musk's new compensation plan is seen as key, and he has entered "wartime CEO" mode. Ives believes that Tesla's prospects in the field of artificial intelligence could be worth $1 trillion, with a target stock price of $500. After Musk increased his stake in Tesla, the stock price rose by 8% in pre-market trading
According to the Zhitong Finance APP, Wedbush Securities reiterated its "Outperform" rating on Tesla (TSLA.US), with the core view that investors are gradually seeing through the company's short-term demand issues and focusing on long-term value.
Analyst Dan Ives pointed out that Tesla is in a leading position in the autonomous driving market opportunities and is expected to become a clear leader in this field—its robotaxi business is projected to expand to 30 to 35 cities in the U.S. over the next year.
Ives and his team also believe that Elon Musk's new compensation plan is crucial, stating that this CEO is Tesla's "most important asset." Currently, the market observes that Musk has re-engaged deeply in work, entering "wartime CEO" mode once again.
From a more macro perspective, Ives views Tesla's upcoming "new chapter in autonomous driving" as "one of the most important phases" in Musk and Tesla's development history. He wrote in the report: "We believe that, in terms of valuation over the next few years, Tesla's prospects in the field of artificial intelligence are worth $1 trillion."
Wedbush has set a target stock price of $500 for Tesla. Additionally, after Musk disclosed an increase in his holdings of Tesla stock worth over $1 billion, the stock's pre-market trading on Monday saw its gains quickly expand to 8%
