In 2023, Tesla (TSLA -1.11%) saw some real positives. The stock climbed nearly 102% and the Model Y took the title of the world's top-selling car. But 2023 also had negatives, including a software upgrade problem, controversy involving the CEO, a fire at its Giga factory in Berlin, and a brutal price war with electric vehicle (EV) makers in China. Tesla stock has taken a beating, down 41% from its 52-week high.

Despite the dark clouds, one analyst thinks Tesla is about to turn the corner.

Has Tesla hit bottom?

Wedbush analyst Dan Ives maintained an outperform (buy) rating on Tesla stock while lowering his price target to $300 from $315. That still represents an upside over the next 12 months of 71% from Thursday's close. Ives said Q1 was "a nightmare quarter" resulting from a "perfect storm" that weighed on sales. He expects softer deliveries will result in a "rip the band-aid" off quarter for Tesla investors, though Ives remains bullish over the long term.

To be clear, the stock will likely remain volatile in the coming weeks. Tesla is scheduled to report its Q1 deliveries on April 2, and investors shouldn't get their hopes up. Analysts' consensus estimates are calling for roughly 471,000 units, but more recent forecasts put that number closer to 420,000. Furthermore, the price war in China likely had a negative impact on Tesla's margins and profitability. Either or both of these could weigh on investor sentiment, and the stock could fall further.

However, this perfect storm may finally be easing. Tesla announced plans for a modest price hike of $1,000 for its Model Y beginning in April. The company is also taking a hands-on approach to its full self-driving (FSD) in North America, installing the feature by default and taking customers on a test drive to demonstrate the technology, which could boost revenue.

Tesla has faced challenges before and emerged stronger afterward. Furthermore, at roughly 4 times forward sales, Tesla's valuation is near a four-year low. Now is the time to buy before the likely rebound to come.