Wall Street’s AI darling: Ace analyst Dan Ives predicts this stock will skyrocket 52%, should you Buy?

Even though Tesla's stock has experienced a roller coaster ride in recent months, analyst Dan Ives is sticking to a bullish narrative for Tesla, as per a report.

When US president Donald Trump won the November election, the electric vehicle (EV) giant's stock went up as high as 91% as expectations of positive regulations for autonomous driving and Elon Musk's good relationship with the president fueled the surge, reported The Motley Fool. Yet since the beginning of 2025, the stock has fallen approximately 10%. Here is why the analyst remains bullish on the stock.

Why has Tesla's stock dropped recently?

One of the reasons is a lacklustre fourth-quarter earnings report, as per The Motley Fool. While the company's energy storage and services segments did well, Tesla's core electric vehicle business declined 6% in year-over-year sales, raising concerns about both the health of the economy and Tesla's competitive position, specifically in China. In addition to that, new tariffs imposed by the Trump administration on Chinese imports—one of Tesla's major markets, are piling on another layer of uncertainty, as per the report.


According to The Motley Fool, Musk's growing engagement in the Trump administration, as he heads DOGE, has also alarmed some investors. They fear that Musk's interest in government efficiency could divert his attention away from Tesla's core business, as per the report.

Tesla's long-term vision keeps investors optimistic

Despite these problems, Tesla's CEO has been able to keep Wall Street enthused, particularly during his earnings call, reported The Motley Fool. Musk took up most of the call explaining Tesla's vision for the future, particularly its AI autonomous vehicle technology and the ambitious Optimus humanoid robot venture, the report added. Investors continue to closely monitor these areas, as per The Motley Fool.

Dan Ives sticks to a bullish stance on Tesla

One of Tesla's strongest supporters of its potential is Dan Ives, a top Wedbush Securities analyst. In a research note dated February 12, Ives recognized the dangers facing Tesla, but he remains optimistic about the stock, as per The Motley Fool.

Ives noted that a "deregulatory environment" during the Trump administration can free up to $1 trillion of value for Tesla's autonomous driving program, reported The Motley Fool.

According to the report, Ives set a 12-month target price for Tesla of $550, which suggests that Tesla stock could soar 52% from its current levels.

FAQs

Could tariffs impact Tesla?
Yes, tariffs imposed on Chinese imports have added uncertainty, especially since China is a significant market for Tesla’s vehicles.

What is Dan Ives' outlook on Tesla?
Analyst Dan Ives remains bullish on Tesla. He is predicting that it could see a 52% rise over the next year, setting a price target of $550.