Tesla Stock Plummets Nearly 50% from Record High, Prompting Wall Street Bulls to Double Down

Tesla stock has experienced a significant decline, falling almost 50% from its record high and shedding nearly all gains acquired following Donald Trump’s election. This sharp downturn has prompted one of Wall Street’s most prominent Tesla supporters, Wedbush analyst Dan Ives, to issue a strong defense of the stock.

The ‘Gut Check Moment’ for Tesla Bulls

Ives described the current situation as a “gut check moment for Tesla supporters (including ourselves)” and emphasized the importance of standing by the company. In response to the stock’s decline, Ives has:

Added Tesla to Wedbush’s “Best Ideas List”
Reaffirmed their Outperform rating
Maintained a price target of $550 for Tesla shares

Factors Contributing to the Stock Decline

Several factors have contributed to Tesla’s stock decline:

Elon Musk’s controversial association with the Trump administration
Increased competition in the EV market
Production challenges
Economic headwinds

Ives’ Perspective on Tesla’s Future

Despite the current challenges, Ives remains optimistic about Tesla’s prospects:

He believes Musk’s political engagement poses minimal risk to Tesla’s global sales
Ives expects Musk to find a better balance between his commitments to DOGE and Tesla/SpaceX in 2025
He asserts that having Trump in the White House could benefit Tesla by fostering a deregulatory environment

Tesla’s Ambitious Plans

Tesla has significant plans for the future, including:

Launching a lower-priced EV model
Introducing its first driverless taxi service as early as June
Advancing its autonomous driving technology
Pursuing initiatives in robotics

Conclusion

Despite the current stock decline, Ives and other Tesla bulls remain confident in the company’s long-term potential. They believe that Tesla’s advancements in autonomous driving technology and robotics could propel the company to a valuation exceeding $2 trillion. However, the company faces challenges in the near term, including production issues, increased competition, and potential impacts from Musk’s political involvement.