Tesla (TSLA) shares fell nearly 11% this week, bringing losses from their record high in December to almost 50%. The stock closed at $262.67 on March 7, its lowest level since November 5.
The steep decline prompted Wedbush analyst Dan Ives, a longtime Tesla bull, to defend the stock. Ives added Tesla to his firm’s “Best Ideas List,” maintaining an Outperform rating and a $550 price target—the highest among Wall Street analysts.
Ives acknowledged concerns over CEO Elon Musk’s political ties, particularly his association with Donald Trump, which some analysts believe is weighing on sentiment. However, he argued that Tesla’s fundamentals remain strong and expects Musk to shift focus back to Tesla and SpaceX in 2025.
Despite the sell-off, Ives sees Tesla’s future tied to a deregulatory environment under a potential Trump administration, which could boost the company’s autonomous vehicle strategy. Wall Street analysts, on average, have a $346 price target for Tesla over the next 12 months.