Wedbush analysts expect Tesla's August robotaxi day to reveal AI and FSD plans, potentially acting as a near-term catalyst for growth.
Tesla Inc (NASDAQ:TSLA) is a "compelling risk/reward stock," on the assumption that the drama around Elon Musk’s pay deal is behind it, and that it can now progress its AI and automation strategies, that’s according to stockbroker Wedbush.
In a note, ahead of Tesla’s ‘robotaxi day in August’, the broker said Tesla has the potential for a rebound in the second half of the year
Specifically, Wedbush is expecting Tesla to wow investors when it unveils and details plans for AI and ‘full self driving’ (FSD) at the event in just over a month’s time.
“We believe the August 8th robotaxi day will be a key historical moment for the Tesla story that we see as a near-term catalyst,” Wedbusgh analyst Daniel Ives said.
Wedbush emphasized that the key to Tesla reaching a $1 trillion+ valuation lies in the success of its autonomous and FSD vision.
“Ultimately the key to reaching a $1 trillion+ valuation is the autonomous and FSD vision taking hold for Tesla which appears to be turning a corner.” Ives added.
Wedbush has an 'outperform' rating for Tesla, with a base case price target of $275 per share, representing approximately 33% upside from Tesla’s current price of around $181.
