Tesla (TSLA) saw its valuation crashed by over $100 billion in a matter of days, but one top Wall Street analyst says that the electric automaker could be worth $1 trillion by the end of the year.
The broader market has seen a correction over the last few weeks, but the EV sector and Tesla, in particular, have seen the worst of it.
Over the last month, Tesla’s stock price has crashed over 30%.
It is bringing its valuation from a height of $800 billion just a few months ago to now $550 billion, with most of the decline happening over the last week.
Tesla’ stock is now trading at around $560 per share
Tesla has benefited more than most in recent stock rallies, and therefore, some are seeing it as a normal pullback, while others believe that there are clearer reasons behind the fall of the electric automaker’s stock price.
Things like more electric competition hitting the market and supply chain issues regarding battery cells and microchips.
But one of Wall Street’s top analysts, Dan Ives, sees the issues as temporary and the recent pullback as a buying opportunity.
Today, the Wedbush analyst issued a new note to clients reiterating that he believes Tesla will hit a trillion-dollar market cap this year:
“If China stays on its current path for Tesla, Musk & Co. could hit one million delivery units globally by 2022. This speaks to our thesis that Tesla will hit a trillion-dollar market cap in 2021 despite this risk-off moment for EV stocks with the bears coming back to life after a long hibernation in their caves over the past year.”
He has a $950 one-year price target on Tesla’s stock, and Ives even believes that Tesla could reach a $1.5 to $2 trillion market cap within the next 2 years.
Ives is one of the top Wall Street analyst, according to Tip Ranks, an analyst ranking firm.
The Wedbush analyst ranked #104 out of 7,336 analysts on TipRanks with a 65% success rate and a 30% average return.