Wedbush analyst Dan Ives envisions electric vehicle (EV) giant Tesla Inc TSLA launching a sub-$30,000 electric vehicle next year. This prediction is one of Ives’ top ten for the disruptive technology sector in 2024.
What Happened: Tesla is expected to roll out the sub-$30,000 vehicle manufactured in Mexico by the end of 2024, a move that Ives believes could significantly impact the EV giant’s unit volume in the future.
Ives, who views Tesla as a tech company rather than an auto company, previously expressed his bullish stance, stating, “That's why we are buying here.”
Other 2024 Forecasts: Among his other predictions for the tech sector in the coming year, Ives forecasts that AI will represent $1 trillion in spending over the next decade. He also anticipates tech stocks to surge by 25% in 2024, with AI acting as a major catalyst. Additionally, Ives predicts another strong year for the ‘Magnificent 7’ stocks — which includes Tesla — projecting a 30% increase in 2024 with AI playing a prominent role.
In December 2022, Ives accurately predicted that Elon Musk would find a new CEO for Twitter and foresaw additional layoffs in the broader tech industry in 2023.
Why It Matters: The launch of a sub-$30,000 EV aligns with Musk’s previous discussions about introducing an affordable electric vehicle, dating as far back as 2018. As of now, Tesla’s cheapest vehicle is the Model 3 rear-wheel drive, priced at $38,990.
During Tesla’s third-quarter earnings call in October, Musk acknowledged the high prices of Tesla vehicles, stating, "I mean, to be totally frank, if our car costs the same as a RAV4, nobody would buy a RAV4 or at least they’re very unlikely to." The RAV4, a rival vehicle, starts below $30,000.
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