On Wednesday, Tesla's stock was heavily sold off after a disappointing Q2 financial report was released by Caixin News. At the close of Wednesday's US market, the stock fell more than 12%, the largest single-day decline since September 2020.

Tesla's latest earnings report showed that the company's profits have declined for the second consecutive quarter. And due to the spending on price cuts and increased investment in artificial intelligence (AI) projects, Tesla's profit margin has dropped to the lowest level in five years. The Robotaxi that Musk is proud of will also be delayed until October.

After the financial report was released, Goldman Sachs and Citigroup successively lowered their target price for Tesla. However, Dan Iverson, an analyst at investment bank Wedbush Securities, believes that there are still many bullish things about Tesla, and the real growth story lies in its ambition in AI.

Iverson predicts that Tesla's AI robot taxi plan will pave the way for new growth, and its highly anticipated affordable car model will boost sales.

"Tesla's magic is back." He wrote on X and reiterated Wedbush's target price of $300 for Tesla. This means that the stock could rise by about 39% from its current level.

On Tuesday's earnings conference call, Musk announced that Tesla's Robotaxi will be delayed until October 10, two months later than the previous release date of August 8. Musk also did not give a clear timetable approved by regulatory authorities, but said that if the first self-driving taxi cannot be realized next year, he will be "shocked".

However, Iverson did not stop because of the lack of clarity. He estimates that the robot taxi will be launched next year and once it is launched, it will "open the beginning of Tesla's AI story", and he predicts that Tesla's valuation is expected to reach 1 trillion US dollars.

He wrote in a report on Wednesday: "The next stage of Tesla's growth story will revolve around autonomous driving, robotic taxis and artificial intelligence. This vision is just around the corner."

Iverson also believes that Tesla's plan to launch a low-cost electric car will drive sales growth in the coming years. Although Musk has not given precise details, he said a lower-cost model will be launched in the first half of 2025, priced below $30,000.

However, other analysts are still more cautious. In addition to Goldman Sachs and Citigroup, Bank of America lowered Tesla's target stock price from $260 to $255 in a report on Wednesday, citing Tesla's low gross margin, but said that the company "still has many catalysts to help push up the stock price in the future".