According to a leading analyst, Tesla is predicted to reach a market capitalization of $1 trillion in the coming year.
Wedbush Securities analyst Dan Ives on Thursday boosted his Tesla (TSLA) - Get Free Report price target to $350 from $310, arguing in a note that the electric-vehicle producer is on track to reach a $1 trillion market cap in 2024.
The boost comes toward the end of another volatile year for Tesla that nonetheless saw the company's stock more than doubling (up 106%).
The bear narrative for Tesla, according to Ives, centers on a reduction in electric-vehicle demand as competition in the sector sharpens.
But Musk's decision to cut prices throughout the year, bringing the average price of a Tesla down more than 20%, was a "poker move for the ages," according to Ives, catalyzing volume growth.
The backdrop of CEO Elon Musk's 2023 price cuts, however, was a year that saw softening growth for EVs. Though the year is set to notch another record for EV adoption, the growth rate of that adoption has been cut nearly in half.
Global passenger EV sales grew 60% between 2021 and 2022. The growth rate between 2022 and 2023, assuming the expected 14 million EVs are sold, is set to land at 34%.
While Ives acknowledged that softening in demand, he contended that "we are still in the early days" of the electric transition.