Daniel Ives, Wedbush’s top analyst, said he is “relatively disappointed” with the pricing and features of Tesla’s (TSLA) recently launched lower-cost electric vehicles (EVs) on October 7. Nonetheless, the long-time Tesla bull views these cheaper models as a first step toward returning to a quarterly delivery run-rate of 500,000 units. He maintained his “Buy” rating on TSLA stock, with a Street-high price target of $600, implying 36.8% upside potential from current levels.
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Ives is a five-star analyst on TipRanks, ranking #366 out of 10,074 analysts tracked. He has a 57% success rate and an impressive average return per rating of 15.90%.
Tesla’s Low-Cost Models Fail to Impress
On October 7, Tesla introduced two low-cost EVs to offset the impact of the federal EV tax credit expiration. The more affordable version of its best-selling Model Y SUV is priced at $39,990, while the lower cost Model 3 sedan starts at $36,990. However, the pricing of these “affordable” models failed to impress investors, leading TSLA stock to drop by more than 4% the same day.
Ives pointed out that the price point of these cheaper versions is only $5,000 lower than prior Model 3 and Model Y variants. He called the launch more of a pricing tactic than a product catalyst, and noted that the models offer little differentiation from their predecessors.
Tesla faces strong competition from Chinese EV makers like BYD (BYDDF), Nio (NIO), and XPeng (XPEV), who have rapidly gained market share and surpassed Tesla in global pure EV sales in 2025. Tesla also competes with traditional automakers General Motors (GM) and Ford (F), which are expanding their EV offerings to capture more market share.
Ives Remains Focused on Tesla’s AI Play
Regardless of the launch of lower cost EVs, Ives remains focused on Tesla’s AI play. He believes Tesla’s advancements in self-driving technology and robotaxi services present substantial growth opportunities beyond vehicle sales.
Tesla launched its robotaxi service in Austin, Texas, in June 2025, and has witnessed rapid adoption. The company is also developing AI-trained humanoid robots and attracting strong user interest in Full Self-Driving (FSD) version 14. These AI-driven initiatives could unlock new revenue streams and help Tesla stay competitive in the evolving EV market.
Is Tesla a Good Stock to Buy Now?
On TipRanks, TSLA stock has a Hold consensus rating based on 15 Buys, 13 Holds, and nine Sell ratings. The average Tesla price target of $353.91 implies 19.3% downside potential from current levels. Year-to-date, TSLA stock has gained 8.6%.
