Wedbush Analyst Strongly Supports Tesla, Maintains High Target Price
Amidst Tesla's ongoing delivery struggles and CEO Musk's escalating conflict with Trump, longtime Tesla enthusiast and Wedbush's renowned analyst Dan Ives spoke out again in support of Tesla. In his latest report, Ives reaffirmed Tesla's "outperform" rating and maintained a $500 target price, demonstrating strong confidence in Tesla's long-term growth potential.
Recovery in Chinese Market Seen as "Heart and Lung" of Growth
Ives specifically pointed out that Tesla saw its first sales growth in China in eight months this June, highlighting the Chinese market as the "heart and lung" of Tesla's sales growth potential. Despite fierce competition within China and the ongoing entry of low-cost electric vehicles, Tesla has driven a recovery in sales through the upgrade cycle of the Model Y, boosting demand.
Ives expects that following the Model Y upgrade cycle, Tesla will see a significant delivery increase in the second half of 2025, accelerating overall growth.
Autonomous Driving Software Still Holds Disruptive Advantage
Ives stated that Tesla maintains a lead in the autonomous driving sector, with its software being "the biggest transformation" in the modern automotive industry. He noted that after Tesla's launch of FSD (Full Self-Driving) in Austin, it is positioned to dominate the U.S. market, with potential to license this technology globally, opening new avenues for profit growth.
Continued Sales Pressure: Cooling in European and American Markets
Despite optimism for long-term growth, Tesla's recent delivery data are less promising. The latest financial report shows that Tesla delivered 384,122 vehicles in Q2 2025, down 13% year-over-year, marking the second consecutive quarter of year-over-year decline. Concurrently, the European market remains sluggish, with Tesla's sales in the EU dropping 45% from January to May this year, and significant declines in Denmark, Sweden, and Germany.
Worsening Tensions Between Trump and Musk Raise Concerns
Aside from delivery challenges, the tension between Musk and Trump also raises market concerns. Trump recently threatened to investigate the government subsidies received by Musk's companies, including Tesla and SpaceX, which could affect policy support for Tesla's autonomous driving and new energy projects.
Ives expressed concern over this, suggesting that the feud between Musk and Trump might unsettle investors, with policy being crucial for Tesla's autonomous driving plans.
Diverging Investor Views But Confidence Remains
Prominent Tesla investor and CEO of Gerber Kawasaki Wealth and Investment Management, Ross Gerber, warned that the Musk-Trump conflict might impact Tesla's stock and create additional challenges.
However, Ives remains confident that Tesla will continue to lead in the global electric vehicle and autonomous driving markets, with the recovery of the Chinese market and advancements in autonomous driving technology being pivotal pillars for Tesla's future growth.
