1 Stock-Split EV Leader to Buy Before It Surges 93%, Predicts Top Expert
Investing
Just when you thought shares of Tesla (NASDAQ:TSLA) were ripe for another share split, the stock went on to shed more than 41% of its value in swift fashion. Undoubtedly, the stock’s latest free-fall has been as vicious and unforgiving to the overenthused investors who chased it ahead with the hopes that a Santa rally would take Elon Musk’s electric vehicle (EV) titan to new all-time highs.
While TSLA stock did hit a new high, the stock reversed course in a hurry. And while much of this latest sell-off has more to do with the broad market and souring for the technology sector than specifics with Tesla (perhaps other than the stretched valuation), I do think there could be a huge opportunity to buy on the dip.
Wall Street analysts still believe in the name, and until they rush to downgrade their price targets or buy recommendations after the latest descent (don’t hold your breath waiting on this!), contrarians may need to brave the stock wreckage if they’re hoping to feel the most lift come an eventual bounce-back.
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Wedbush Securities has a price target on TSLA that implies close to 93% upside.
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Morgan Stanley also named Tesla as a “top pick” this week.
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Tesla stock’s the fastest falling knife of the Mag Seven of late
Indeed, the perceived risks in buying TSLA stock on the way down are, indeed, high. But given the sudden valuation reset, a strong case could be made that the inherent risk is far less than it was back in mid-December, when shares were pedalling higher over the company’s self-driving opportunity — and let’s not forget about the robots!
Has anything fundamental changed about the company since December? I’d argue that not much has changed about the longer-term narrative other than the price of shares.
While the company has a long growth runway ahead of it, specifically physical AI, the big question on many investors’ minds is: when are the profits coming? Of course, such profound innovations, as full self-driving (FSD), aren’t going to drive profits through the roof overnight.
If you want next-level growth, profits may need to take a backseat
In any case, I don’t think your average retail investor has the patience for a name like Tesla, where most of the value could be realized over the span of many years. If, however, you’ve got an investment horizon of three to five years rather than just a few weeks, my guess is TSLA stock could prove a timely buy on the dip.
At this point in the AI boom, return on investment matters a whole lot more. And as AI investors keep DeepSeek and its “theoretical” 545% profit margin at top of mind, investors may prioritize margin gains in the forecast over sheer sales growth.
While I wouldn’t say the stock market’s at a tipping point as investors await the next big themes to play out in AI (think agents, automation, robots, more custom chips, AI compute on the edge), I do think that a lot of the froth has already been cut off the top when it comes to names like Tesla that may be at risk of sacrificing a bit of near-term margins for a shot at dominating in emerging markets.
Time to be greedy with Tesla while others rapidly hit the sell button?
The stock has already seen almost half of its value wiped out in around three months. That’s not just a mere correction; it’s a crash, and one likely driven by emotion. These days, the main emotion on Wall Street is fear. According to the CNN Fear and Greed Index, investors seem to be running scared, with the gauge suggesting “Extreme Fear” is the dominant sentiment.
At $284 and change per share, the Street-high analyst price target of $550.00 per share held by Webush’s Dan Ives now implies more than 93% upside from current levels. If Tesla stock has another leg lower, Ives’ price target could entail a double.
It’s not just Ives and Wedbush who are staying bullish on Elon Musk’s EV titan. Morgan Stanley (NYSE:MS) analyst Adam Jonas recently stepped forward with a table-pounding call of his own, naming Tesla stock as a “top pick.”
That’s a bold call and one I think will be proven timely. Investors have lost patience with Tesla. But for those looking to stand with Musk for the long haul, today’s entry point is tough to ignore, even if the name has yet to bottom. In any case, to score such an outsized reward, investors will need to be greedy as others run scared.
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