August 8 Robotaxi Day: A Key Historical Moment for Tesla
Wedbush analysts have maintained an Outperform rating and a $275 price target on Tesla stock. They believe that the upcoming "Tesla AI Day" on August 8th will be a pivotal moment for the company, potentially propelling its stock towards a $1 trillion market cap.
Why August 8th is Important
In recent notes, Wedbush analysts stated:
"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."
This optimism is based on several factors, including:
- Progress on Full Self-Driving (FSD) technology
- The planned unveiling of Tesla’s first robotaxi
Elon Musk's Vision
A significant part of Wedbush’s confidence in Tesla comes from CEO Elon Musk's strategic vision. Notably, they highlight:
- The FSD v12.4 update
- The beginning of FSD testing in China
Key Predictions
Wedbush’s bull case valuation of $350 per share hinges on Tesla's success with FSD and autonomous driving technologies. They explain:
"As part of Tesla's long-driven full self-drive thesis, it is now official that robotaxis will become a part of the Tesla portfolio."
Challenges Ahead
Wedbush analysts do acknowledge some challenges, particularly short-term demand fluctuations in China. However, they see signs of stabilization and believe a global demand rebound is possible. They emphasize the importance of the second half of 2024 for Tesla’s turnaround, stressing the need for strong execution by Musk and his team.
Positive Catalysts
Despite the challenges, Wedbush views Tesla as a company with a compelling risk/reward profile. With the August 8th Robotaxi Day and potential demand resurgence, they believe Tesla has multiple positive catalysts ahead.
Overall, this event could mark a significant step in Tesla's journey, potentially leading to increased investor confidence and stock value growth.
