Tesla will report its second-quarter earnings, and Wedbush is optimistic due to Elon Musk's renewed dedication. Despite concerns over Musk's previous distractions, he is now focused on his companies. Dan Ives, Wedbush’s lead analyst, maintains a bullish outlook on Tesla. Key issues include managing the loss of EV tax credits from the recent Beltway Bill and the expectations for global delivery rebounds, particularly in China, encouraged by the Model Y refresh. Ives believes Tesla's autonomy could reach a valuation of $1 trillion as expansions continue.
Ives has continued to push suggestions forward about what Tesla should do, what its potential valuation could be in the coming years with autonomy, and how it will deal with the loss of the EV tax credit.
Losing the EV tax credits with the recent Beltway Bill will be a headwind to Tesla and competitors in the EV landscape looking ahead, and this cash cow will become less of the story (and FCF) in 2026.
Importantly, we anticipate deliveries globally to rebound in 2H led by some improvement on the key China front with the Model Y refresh a catalyst.
Ives and Wedbush believe the autonomy could be worth $1 trillion for Tesla, especially as it continues to expand throughout Austin and eventually to other territories.
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