Wedbush Securities has reiterated its $275 price target for Tesla stock, suggesting that the electric car maker could hit a $1 trillion valuation. The firm believes that Tesla is set to rebound in the second half of the year, following recent approval of Elon Musk's $56 billion pay package by investors.
Analysts at Wedbush are optimistic about Tesla's future, pointing to the potential unveiling of key artificial intelligence and robotics projects. They believe that once Musk reaches a 25% ownership stake in the company, the threat of him taking AI projects outside of Tesla will be resolved.
Tesla's upcoming robotaxi day, where it is expected to showcase its full self-driving taxi, could be a significant moment for the company and a bullish catalyst for its stock. Additionally, demand for Teslas in China is starting to pick up, despite increasing competition from other electric vehicle makers.
While Tesla stock has faced challenges this year, including lower than expected deliveries in the first quarter, Wedbush analysts see potential for a turnaround in the second half of the year. They acknowledge that the stock has been through a rough patch but believe that Musk's execution going forward will be crucial for its success.
Overall, Wedbush Securities remains bullish on Tesla's prospects, citing upcoming AI and robotics initiatives, potential demand turnaround, and the possibility of a rebound in the stock price. Investors will be watching closely to see if Tesla can deliver on these expectations in the coming months.