The sale in Tesla is a ‘massive buying opportunity’ before the company achieves a market valuation of $ 1 billion this year, says Wedbush.

Investors looking for a huge buying opportunity should look to Tesla, Wedbush analyst Dan Ives said in a note on Monday.

Shares in Tesla are 33% lower than the everyday high. A rise in interest rates over the past month has led to a revolution in high-growth technology stocks and to cyclical stocks benefiting from an economic reopening.

According to Ives, three factors have also hurt Tesla shares over the past few weeks: concerns about valuation, increasing global competition in the space for electric vehicles, and a shortage of chips and the demand for China, which has caused soft gates so far in 2021.

But this is not the time to panic, Ives said, as the recent weakness in EV shares will be short-lived as companies consume their profits.

“The sale we have seen in EV countries, in our opinion, creates a huge buying opportunity to own Chinese EV players, as well as the leader of the Tesla package in this golden era of EVs,” Ives said.

The fundamentals remain strong for space, as tax incentives and the Biden administration’s green energy agenda should help stimulate significant demand for EVs in the coming months, the note reads.

Ives expects EV sales to represent 20% of all car sales worldwide by 2030, a significant increase of 3% today.

Eventually, Ives sees significant backlogs for Tesla; he expects the company to reach a market valuation of $ 1 trillion by the end of the year. With a market capitalization of $ 574 billion on Monday, Tesla will have to rise 75% to reach a valuation of $ 1 billion, if outstanding shares remain constant.

“In the EV party, it’s 20:00, not 02:00,” Ives said.

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