Wedbush analysts believe the upcoming "Tesla (NASDAQ:TSLA) AI Day" on August 8th will be a pivotal moment for the company, potentially propelling its stock towards a $1 trillion market cap. The firm maintained an Outperform rating and $275 price target on Tesla stock.
"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," Wedbush states in a recent note. This optimism stems from recent developments, including the company's progress on its Full Self-Driving (FSD) technology and the upcoming unveiling of its first robotaxi.
Wedbush highlights CEO Elon Musk's "strategic vision with FSD and Optimus" as a key factor in Tesla's future success. They see the recent FSD v12.4 update and the beginning of FSD testing in China as positive signs. Their bull case valuation of $350 per share hinges on Tesla achieving success with FSD and autonomous driving.
The August 8th event is expected to be a major reveal, finally bringing Tesla's long-discussed robotaxi concept to fruition. "As part of Tesla's long-driven full self-drive thesis," Wedbush explains, "it is now official that robotaxis will become a part of the Tesla portfolio."
Wedbush acknowledges some ongoing challenges, like short-term demand fluctuations, particularly in China.
However, they see signs of stabilization and believe that with China on board, a global demand rebound is possible. They emphasize the importance of the second half of 2024 for Tesla's turnaround, with much hinging on strong execution by Musk and his team.
Overall, Wedbush views Tesla as a company with a compelling risk/reward profile. With the August 8th Robotaxi Day and a potential demand rebound on the horizon, they believe Tesla has positive catalysts ahead.