Tesla stocks have recently shown strong performance, although they have not reached their historical highs, analysts see the possibility of it returning to its peak.
The stock of this electric vehicle manufacturer peaked in November 2021. Wade Bush analyst stated that the following factors will determine whether it can reach that level again.
Tesla (TSLA.O) has recently performed well, almost wiping out the stock decline since the beginning of the year in the past few weeks. Although it is still far from its peak, some analysts see a path to return to stock price peak.
On Wednesday, the stock rose by 6.5%, reaching $246.39, and exceeded the closing price for 2023 in after-hours trading. The historical high was reached in November 2021 at $409.
The trend of Tesla's stock is closely related to the destiny of the electric vehicle industry. It reached its peak three years ago, and then the bubble burst as demand began to slow down and competition intensified.
However, the recent good news is that Tesla is listed in the government vehicle procurement catalog of Jiangsu Province. This means that the company's electric vehicles can be used as service vehicles for public institutions in Jiangsu.
However, the industry's troubles continue, and promising startups are struggling. For example, Fisker has already filed for bankruptcy, while Rivian (RIVN.O) needs strong support from Volkswagen.
Dan Ives, the Wade Bush analyst who leads the team, believes that future success may require the company to go beyond the scope of electric vehicles. Tesla CEO Elon Musk recently regained the title of the world's richest man and could push the stock up by making breakthroughs in the field of artificial intelligence.
'The key to Tesla's stock is that the market realizes that Tesla is the most underestimated artificial intelligence investment in the market,' said Wade Bush analyst Dan Ives. 'Tesla is more like an artificial intelligence and robotics company than a traditional car company. Now, the market is starting to expect August 8th to be a key inflection day.'
On July 2, Wade Bush raised Tesla's stock target price from $275 to $300 and maintained its 'outperform' rating. But in their bullish case, they believe that the stock price could rise to $400. They stated that Tesla's fully automated driving department alone could be worth $1 trillion.
Wade Bush is very optimistic about the stock. But if they believe Tesla's dark period is over, investors will also have much to celebrate.