Buying Tesla Stock Today Could Be Like Buying Apple Stock in 2009, According to This Wall Street Strategist

(NASDAQ: TSLA) reported solid financial results for the second quarter, beating expectations across the board. Deliveries soared 83% year over year as the company leaned into discounts, revenue rose 47% to $24.9 billion, and net income climbed 20% to $0.78 per diluted share. But Wall Street took issue with the price cuts, which pushed Tesla's operating margin to a two-year low, and the stock price slipped 10% following the report.

Wedbush analyst Dan Ives had a different reaction. He raised his price target on Tesla stock to $350 per share, and he praised Tesla for sacrificing profits in the short term. Ives said he believes prioritizing volume over margins today will make Tesla more profitable as it monetizes its full self-driving (FSD) technology in the future.

Ives elaborated in his research note on Tesla by drawing an interesting comparison: "We view Tesla where Apple (NASDAQ: AAPL) was in the 2008/2009 period, as [the company] was just starting to monetize its services." Ives opined that Tesla is playing chess while other automakers are playing checkers.

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Source Fool.com