In a recent interview with CNBC, Wedbush analyst Dan Ives expressed his optimism regarding Tesla's stock, stating that he believes the struggling electric car maker is set for a rally in the second half of this year. Despite a tepid performance thus far in 2024, Ives remained confident in the growth potential of Tesla.

Tesla's stock has experienced an 18% decline in 2024, largely driven by ailing demand for electric vehicles, increasing competition in China, and the legal battles involving CEO Elon Musk. However, Ives noted that these challenges are beginning to lessen, especially as conditions stabilize in China. Tesla's decision to halt price cuts on its main car models signals a potential increase in demand.

"They had massive headwinds in China, and now we're seeing the comeback play out," Ives stated. While Tesla's second-quarter deliveries, expected to be announced this week, may show a downtrend, Ives believes this could be the "last of the worst news" for the company.

August is set to be a significant month for Tesla, as they plan to unveil their Robotaxi, a fully self-driving model that Musk has been teasing for months. Ives sees this release as a potential turning point for Tesla's stock, referring to the Robotaxi as a "magic model" for the company.

Furthermore, Ives suggests that the gains for Tesla could be even more substantial if Donald Trump is re-elected for a second term, as he is considered to be "pro-Musk." In contrast, President Joe Biden has been accused of "actively ignoring" Tesla by Ives.

Wedbush maintains an "outperform" rating on Tesla's stock and a price target of $275, implying a possible 33% upside from current levels. Ives believes that Tesla's "comeback kids" narrative will be fueled by the release of the Robotaxi in August and anticipates a "massive run" for the stock in the second half of the year. He also suggests that the worst may be behind Musk and Tesla.

However, other analysts have a more cautious stance. Wells Fargo strategists warned earlier this year that Tesla could face a potential downside of as much as 91%, citing issues with the company's business model and the long-term headwinds to growth.

As Tesla prepares to announce its second-quarter deliveries and gears up for the Robotaxi unveiling, investors will be closely watching to see if the positive outlook suggested by Ives will materialize, or if the concerns raised by other analysts will become a reality.