In its latest report, US investment bank Wedbush stated that as Tesla benefits from the price war, the company's market value will once again exceed $1 trillion in 2024.
Wade Bush technology analyst Dan Aives raised Tesla's target price from $310 to $350 late last week, more than 38% higher than the latest closing price of the stock of $252.54.
According to calculations, this will increase Tesla's market value from the current $791.3 billion to $1.1 trillion.
After experiencing a downturn in 2022, Tesla, one of the "tech giants" in the US stock market, has seen its stock price rise by about 133% so far this year due to signs of increased demand for cars, a surge in artificial intelligence investment, and market expectations that the Federal Reserve will soon begin cutting interest rates.
"We reiterate our rating of Tesla as' outperforming the market 'and believe that Tesla will reach a market value of $1 trillion by 2024, despite facing increasing skepticism," Ives wrote in a research report.
Tesla has repeatedly lowered the prices of its sedans and SUVs globally in 2023, especially in the Chinese market. This strategy helped the car company set new delivery records in both the first and second quarters of this year, but at the cost of sacrificing profit margins.
"As we enter 2023, Wall Street's view of Tesla is that car demand is weakening and competition is intensifying across the board," added Aives. "On the contrary, Musk's move was to lower car prices globally, thereby boosting sales."
Avis predicts that Tesla's sales in China will reach a new high in the fourth quarter; He also predicts that the car company's sales in 2024 will increase by 25% -30% year-on-year, between 2.2 million and 2.3 million vehicles.
Other driving factors
Elves said that Tesla will also benefit from the slowing pace of General Motors and Ford's transition to electric vehicles. For example, it is rumored that Ford will begin reducing production of F-150 electric pickup trucks from 2024.
He also pointed out that the launch of Tesla's Cyber Trucks, the upcoming Model 2 priced below $30000, and fully autonomous driving (FSD) technology may be other factors driving Tesla's performance growth next year.
Aives stated that in the next 12 to 18 months, FSD and supercharging station networks may increase Tesla's per share value by $75.
As early as October 2021, Tesla became the first car company with a market value exceeding $1 trillion and briefly joined the "trillion dollar" market value club. At present, members of the club include Apple, Microsoft, Google's parent company Alphabet, Amazon, Nvidia, and Saudi state-owned oil giant Saudi Aramco.