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Shares of Tesla (NASDAQ: TSLA) fell 33% from its all-time high record. Wedbush analyst Dan Ives suggested investors buy the dip.  He explained, it’s "a massive buying opportunity" before the car manufacturer reaches the $1 trillion market valuation.

Cyclical stocks highly benefited from an economic reopening. The fast-paced vaccine roll-out resulted in a price surge. This lead to a plunge in tech stocks, including a steep drop in Tesla. However, Ives insisted Tesla will recover and investors should make the most out of this opportunity.

Ives argued that multiple factors were behind Tesla's plunge in recent weeks: increased global competition in electric-vehicles, shortage of chips, demand from China, and valuation concerns which "caused softness out of the gates so far in 2021. He also reminded investors now "is not the time to panic." Due to the recent weakness in EV, stocks will be short as companies digest their gains.

"The sell-off we have seen in EV creates a massive buying opportunity, in our opinion, to own Chinese EV players as well as the leader of the pack - Tesla - heading into this golden age of EVs," Ives added.

Ives noted that Pres. Joe Biden’s green-energy agenda and tax incentives will drive EV stock prices in the upcoming months. He expects EV sales to represent 20% of the total auto sales in the world by 2030, compared to 3% today.

Additionally, Ives believes that Tesla will soon hit a $1 trillion market valuation before the end of 2021. The electric-car manufacturer’s market capitalization hit $574 billion on Monday and would need to increase by 75% to reach the $1 trillion valuation.

"In the EV party, it's 8 pm, not 2 am," Ives joked.

Tesla is Building a Gigantic Battery in Texas

Meanwhile, Elon Musk CEO of Tesla is entering the Texas power market. He is edging into the market "with previously unrevealed construction of a gigantic battery connected to an ailing electric grid that nearly collapsed last month," Naureen Malik of Bloomberg Quint reported.

Gambit Energy Storage LLC, a subsidiary of Tesla will be building the 100-megawatt energy storage project in Angleton, Texas.

According to a report by Bloomberg, the battery could give power to 20,000 homes on a hot summer day. Although site workers tried to keep the equipment discrete, uniforms and public documents confirmed Tesla is behind the project.

Last month, Tesla invested in $1.5 billion in Bitcoin, one of the largest investments in the digital currencies.

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