Cybertruck should push Tesla's valuation back toward $1 trillion, Wedbush analyst says
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- The Cybertruck launch Thursday will be a flex the muscles moment for Tesla, according to Wedbush analyst Dan Ives.
- "It further shows the innovation and mind share lead that Tesla has built," he said.
- Ives maintained his $310 price target for the EV maker, implying a $996 billion market capitalization.
The launch of Tesla's Cybertruck Thursday will remind investors of the EV maker's dominance and help propel it toward a $1 trillion market valuation, according to Wedbush.
In a Tuesday research note, tech analyst Dan Ives said the vehicle's debut would be a "big moment" for Elon Musk's company, maintaining his 12-month stock-price target of $310.
Tesla's market capitalization would climb to $996 billion if shares hit that level, by Business Insider's calculations.
"Launching Cybertruck is important for the broader Tesla growth story over the coming years and also will prove to the doubters that Musk can successfully expand the Tesla halo effect as more consumers head down the EV path," Ives wrote.
The new product is unlikely "move the financial needle" for the EV maker in 2024 but will demonstrate to investors "the innovation and mind share lead that Tesla has built" versus legacy automakers, he added.
Tesla is expected to deliver 10 Cybertrucks at a launch event in Texas Thursday, four years after Musk debuted the steel-clad vehicle. Production started earlier this year, with a series of sightings building hype for the futuristic-looking truck – but as of Tuesday, order holders still didn't know how much it'll cost.
The EV maker's share price has performed strongly this year after a dismal 2022, jumping 98% thanks to strong financials, investors' expectation that the Federal Reserve will soon cut interest rates, and a rush toward the so-called "Magnificent Seven" group of mega-cap Big Tech stocks.