Despite the recent approval of the CEO’s pay package, billionaire Elon Musk, Tesla Motors has not been performing well in 2024. The electric vehicle company has been struggling with demand, especially in the first quarter, and is currently down 25.56% since the beginning of the year, with a stock price of $185.02.
This decline in performance has also led to a significant drop in market capitalization, with Tesla’s valuation decreasing from over $1 trillion in 2021 to $581.93 billion. Despite these challenges, analyst Dan Ives from Wedbush believes that Tesla will bounce back in the next 12 months.
In a recent interview, Ives predicted that Tesla would achieve a major milestone in the first quarter of 2025 by releasing a more affordable vehicle priced below $35,000. Rumors of a cheaper Tesla model, estimated to cost $27,000 or less, have been circulating for almost a year, with the Berlin factory expected to produce it.
Ives is confident that Tesla will overcome its current demand issues and regain its $1 trillion market cap within the next year, possibly in the first half of 2025. The company has also received a boost in sales in Europe due to increased tariffs on Chinese electric vehicles by the EU, and is expected to benefit from the upcoming presidential elections.
Despite the challenges, Ives remains optimistic about Tesla’s future, maintaining a 12-month stock price target of $275. Similarly, Morgan Stanley has a high forecast for Tesla’s stock at $310, which would bring the market cap close to $1 trillion at $987 billion in a year’s time.
