Tesla earnings were tough, but the 'mojo is back' as AI to power the next phase of growth, Wedbush's Dan Ives says

• Tesla reported downbeat earnings, but Dan Ives still see the stock hitting $300 a share.

• Tesla's AI-powered Robotaxi will be the start of huge growth for the carmaker, Ives says.

• Shares of the carmaker have tumbled as much as 12% Wednesday morning.

Tesla stock sold off after it reported second-quarter earnings that missed analyst estimates, but there's still reason to be bullish on future growth for the electric vehicle maker.

Tesla stock tumbled roughly 12% Wednesday morning, to trade at about $218 a share, as earnings showed its auto business took a big hit in the second quarter.

Yet, Wedbush Securities analyst Dan Ives says there's still a lot to be bullish about, and that the real growth story lies in the company's artificial intelligence ambitions.

Ives predicts Tesla's plans for an AI-powered Robotaxi will pave the way for new growth, while its much-anticipated cheaper vehicle model will boost sales volumes.

"The mojo is back at Tesla," Ives posted on X, reiterating Wedbush's $300 price target for the stock, representing a potential gain of about 36% from where the stock was trading midmorning on Wednesday.

During Tuesday's earnings call, Musk announced Tesla's Robotaxi rollout has been delayed to October 10th, months after the initial reveal date in early August. Musk also failed to give a clear timeline on regulatory approval, but said he would be "shocked" if the first Robotaxi ride can't happen next year.

Ives isn't phased by the lack of clarity.

He estimates the Robotaxi rollout will happen next year, and once it does, it will "unleash the beginning of the AI story at Tesla," which he says is on track to hit a $1 trillion valuation.

"The next phase of the Tesla growth story is around autonomous, Robotaxis, and AI playing out," Ives wrote in a note on Wednesday. "That vision is on the doorstep."

Ives also sees Tesla's plans for a cheaper EV as a driver of increased sales in the next several years. While Musk did not give clear specifics, he said a lower-cost model will be unveiled in the first half of 2025 and will be priced under $30,000.

Other analysts are more cautious. In a Wednesday note, Bank of America lowered its price target from $260 to $255, citing Tesla's lower gross margins, but says the company "still has a number of catalysts ahead that could help drive the stock."

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