Tesla is expected to reach a 1 trillion market capitalization at this time
Despite the approval of a new pay package for billionaire CEO Elon Musk, Tesla Motors has not been performing well in 2024. The electric vehicle company has been facing challenges with demand, particularly in the first quarter, and is currently down by 25.56% since the beginning of the year, with a stock price of $185.02.
This decline in performance has also led to a significant decrease in Tesla’s market capitalization, dropping from over $1 trillion at the end of 2021 to $581.93 billion. However, despite these setbacks, analyst Dan Ives from Wedbush believes that Tesla will see an upward trend in the next 12 months.
In a recent interview, Ives expressed confidence that Tesla will reach a major milestone in the first quarter of 2025 by releasing a more affordable vehicle priced below $35,000. Rumors of this new, cheaper model have been circulating for almost a year, with the Berlin factory expected to be the production site.
Ives is optimistic that Tesla will overcome its current demand challenges and regain a market cap of over $1 trillion within the next year, potentially in the first half of 2025. Recent developments, such as increased tariffs on Chinese electric vehicles in Europe and potential changes in US tax policies, are expected to benefit Tesla’s sales and production.
Despite the current difficulties, analysts like Ives and Morgan Stanley have high expectations for Tesla’s stock price in the next 12 months, with targets set at $275 and $310 respectively. These forecasts indicate a potential market cap close to or exceeding $1 trillion, showing confidence in Tesla’s future growth.
