Fast facts
- Tesla shares have fallen 34% this year
- Many investors are angry and feel they have been misled.
- Wedbush's Dan Ives explains why there's still hope for the stock
While Elon Musk's Tesla (TSLA) has been a hot stock in recent years, it has been on a steady decline in 2024.
Many investors who once believed in the stock have been walking away, unhappy with Musk's decisions lately, which include several major price cuts throughout 2023 in an effort to gain market share.
Related: As Tesla Stock Sinks, Key Investor Explains (Lack of) Value in Dojo, Optimus
However, not all analysts and investors have been scared. Wedbush's Dan Ives, a prominent Wall Street analyst, addressed his own bullish stance on the electric vehicle producer in a Bloomberg interview on March 14.
Why we remain firmly in the bullish camp on Tesla despite near-term headwinds @bsurveillance https://t.co/B9ERoUYp8V
– Dan Ives (@DivesTech) March 15, 2024
“My view on Tesla is that it's easy to go negative… On the other hand, this will be a company on the way to two and a half, three million units. When we look at the next few years, they will gain more share, the leverage will be there and I think ultimately the numbers, the earnings per share and the growth will go back up,” Ives said.
“It just doesn't feel like the market is there right now. It seems like the market is in a space that benefits hybrids: Toyota and GM are starting to lean in that direction. Think about it. Ford is already there. Tesla doesn't feel like it's in the optimal point. What will change your mind?” co-host Jonathan Ferro asked Ives.
“The problem now is that the numbers are going down. It's a slow first quarter. So in the short term it's easy to be negative about it. Our view is that we've been here before. Many times we've been in these white-knuckle periods “For me, this is not the end of the growth story. I think this is a growth story with (artificial intelligence, fully autonomous driving) still going to have a big part on the horizon,” Ives said.
Ferro questioned Ives' stance, saying: “Then you know why they're upset because, if I'm a customer, this stock is down something like 30% year-to-date and you've had a buy the whole time. That's why They are upset.”
Related: There's a dirty secret about Tesla that Elon Musk doesn't want you to know
Ives remained unfazed by the comment, saying: “In my career, in 25 years, our calls have been, when things got worse, whether it was Apple, Tesla, Amazon, Apple; when things got worse, you can use those periods. . on the other side. It's easy to shout fire in a crowded theater when you're going through this period,” Ives said.
