Wedbush's Dan Ives On Recent Tesla Downgrade: 'Even The New York City Cab Driver Is Bearish'

Wedbush analyst Dan Ives commented on the recent downgrade of Tesla Inc. TSLA, suggesting a shift in market sentiment. Ives noted the pervasive bearish outlook, even among New York City cab drivers, but predicted a significant rebound for Tesla in the coming years, especially with advancements in AI technology.

What Happened: On Wednesday, Ives acknowledged the current “piling on” by bears emerging “out of hibernation,” yet he maintains a long-term bullish stance on the electric vehicle (EV) giant. He believes that the current sentiment will be viewed retrospectively as a prime buying opportunity for investors.

“When you look through in six to nine months, we are going to look at this as more of a golden buying opportunity for Tesla over the next two to three years, especially with AI, right in time to throw in the white towel. But for now, we all know that even the New York City cab driver is bearish on Tesla,” he told to CNBC.

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Why It Matters: Tesla’s stock faced headwinds as Wells Fargo downgraded the company from Equal Weight to Underweight, with a significant reduction in the price target. The downgrade was driven by concerns over disappointing deliveries, potential negative earnings revisions, and a loss of luxury brand premium following price cuts.

Despite these challenges, Ives previously emphasized the potential of Tesla’s AI and Full Self-Driving (FSD) technology to elevate the company’s market capitalization to over $1 trillion. He pointed out that the risk/reward at current levels is “extremely compelling,” with Tesla’s AI and FSD making major strides. Ives emphasized that “now is NOT the time to throw in the towel.”

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