Tesla Bull Says Stock's Nightmarish Lean Patch Will Likely End As Demand Turnaround Begins To Take Hold: This Upcoming Catalyst Is 'Key Historic Moment' For EV Maker

With the uncertainty regarding Tesla, Inc. TSLA CEO Elon Musk’s compensation package now in the rearview mirror following shareholder approval of the same, the electric-vehicle maker can go full throttle with its artificial intelligence initiatives, said a bullish analyst on Friday.

Musk’s Vision AI Taking Hold: AI initiatives will likely be kept under the hood of Tesla once the Delaware court approves the pay package and the board puts in place a new AI incentive-driven compensation package for Musk that gives the billionaire 25% ownership control, said Ives in a note.

Musk sounded upbeat about autonomous driving and new models at the shareholder meeting, the analyst said, adding that he expects a Model 2.5 to hit the road in early 2025., The billionaire’s strategic vision of full self-driving and Optimus is beginning to take hold, with some early positive signs forthcoming, he added.

Aug. 8 Catalyst: Ives said he sees the Aug. 8 robotaxi unveil event as a “key historical moment for the Tesla story” and a near-term catalyst. “We continue to believe that Tesla is more of an AI and robotics play than a traditional car company,” he said.

The view is in line with Morgan Stanley analyst Adam Jonas, who said in a late Thursday note that he expects Musk’s Master Plan 4 to focus on Tesla’s commercial ambitions in AI, robotics, and hybrid computer

See Also: Everything You Need To Know Tesla Stock

Present Tense, Future Bright: June demand remained choppy but the Street will likely look past it and into the second-half trajectory, said Ives. The analyst said he sees Tesla’s EV prices stabilizing following the string of price cuts implemented in 2023.

With users in the key Chinese market realizing that the price cuts are in the rearview, demand is seeing an uptick here, the analyst said.

“The Street is not expecting any major fireworks for the June quarter but the seeds for a demand turnaround are starting
to take place in our view and now it’s about execution for Musk and Tesla heading into 2H and 2025,” Ives said.

“The stock has been through a nightmare after a Cinderella ride the last few years and now it’s time for Musk to turn this around.”

The analyst sees positive catalysts ahead for Tesla and a “compelling risk/reward,” with the Aug. 8th Robotaxi Day and a second-half rebound potentially in the cards.

Ives has an Outperform rating for Tesla and a $275 price target, with the bull-case target of $350 predicated on
Musk and Tesla finding success on FSD and the autonomous future.

Price Action: In premarket trading on Friday, Tesla shares fell 0.25% to $181.12, according to Benzinga Pro data.

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