Tesla's Robotaxi Launch Sparks $2 Trillion Market Cap Prediction Amid AI Revolution

Tesla could reach $2 trillion in market cap by end of 2026 as autonomous era begins in Austin, says Dan Ives

Wedbush's Dan Ives believes that Tesla "remains the most undervalued AI play in the market today" and could roughly double its value by the end of next year. In a Friday note, the analyst reiterated his outperform rating and $500 price target on the electric vehicle maker. Shares of Tesla closed at $322.05 on Wednesday, meaning that Ives' forecast signals upside of more than 55%. Tesla has struggled this year, plunging more than 20%. TSLA YTD mountain TSLA YTD chart Still, Ives remains bullish on the stock, noting that the "golden era of autonomous for Tesla" officially begins Sunday in Austin with the launch of roughly 20 Model Y robotaxis. He said the rise of autonomous vehicles could drive Tesla's market cap to $2 trillion by the end of 2026 from roughly $1 trillion as of Wednesday's close. It's expected that Tesla will steadily ramp up its robotaxi service to roughly 25 U.S. cities in the next year. Ives added that Tesla's full-scale production of Cybercabs, beginning next year, will be its next key step in monetizing the autonomous vision of the future. "Taking a step back we view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company ... as we believe the AI future at Tesla is worth $1 trillion to the valuation alone over the next few years," Ives wrote. "There will be many setbacks ... but given its unmatched scale and scope globally we believe Tesla has the opportunity to own the autonomous market and down the road license its technology to other auto players both in the U.S. and around the globe." The analyst added that he expects President Donald Trump to help clear the federal regulatory spiderwebs that might have troubled Tesla CEO Elon Musk's autonomous ambitions in the past. "The BFF/frenemy situation with Musk and Trump has created a soap opera on this front but ultimately Trump wants the U.S. to stay ahead of China in this AI Arms Race and autonomous is a key factor in who wins AI ... with Tesla playing a major role on robotaxis," Ives said. "We expect over the coming months an easing of the federal framework for autonomous with more power going to the federal regulators with states having less authority on the autonomous rules/approvals/framework." Tesla shares rose more than 1% in the premarket. Analysts are split on the stock. Of the 55 who cover it, 25 rate it a buy or strong buy, according to LSEG. Another 19 have a hold rating on Tesla, while 11 assigned underperform or sell ratings.

Tech bull Dan Ives predicts Tesla's robotaxi launch will catapult the company to a $2 trillion market cap, almost double its current value

Tesla is on the cusp of a new era in the company's history, according to the bullish tech investor Dan Ives. As Tesla prepares to launch the early stages of its robotaxi offering in Austin, Texas this weekend, the carmaker will make good on its long-held ambitions to enter the ride-hailing business. Ives, whose Wedbush Securities is often bullish on the tech sector, welcomed the robotaxi launch. "We view this autonomous chapter as one of the most important for Musk and Tesla in its history as a company," he wrote in an analyst note released Friday. The idea that Tesla's self-driving technology would enable it to have a fleet of robotaxis is central to the investment thesis for the company. Its chief executive, Elon Musk, has long outlined his vision of millions of self-driving Teslas shuttling around paying customers as the next phase of the company's future. Musk has said the company's aim is to allow Tesla owners to make their cars part of its robotaxi fleet when they aren't using their cars. The best-case scenario of the robotaxi rollout could essentially double Tesla's market cap by the end of 2026, Ives said. He predicted that Tesla's market cap would reach $2 trillion through next year. Tesla's stock has had a poor year in 2025 so far, declining 15.9% year-to-date. The company reported disappointing sales results earlier this year. Tesla shareholders also found themselves having to contend with forces far outside their control such as a souring relationship between the U.S. and China, its two biggest markets, and Musk's involvement in politics and the Trump administration, which attracted significant scrutiny. Tesla did not respond to a request for comment. After the test in Austin, which will start in a geofenced location with about 25 cars, future expansions will be made easier by a favorable regulatory environment. "We fully expect under a [President Donald] Trump White House these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around autonomous clears significantly," Ives said. The excitement of Tesla's most bullish investors, however, put off some others. Earlier this month, investment firm Baird downgraded Tesla's stock from "buy" to "neutral" because it saw the rate at which the robotaxi program would expand as "a bit too optimistic." Baird also highlighted the public tiff between Musk and Trump as raising uncertainty surrounding Tesla's future. Argus Research cited the falling-out as the main reason for its own downgrade, which also came this month. Analysts at Argus feared Tesla's stock was trading on "non-fundamental events," meaning investors were buying and selling the stock for reasons that weren't related to its financials. "Looking ahead, we are concerned that the war of words between President Trump and Elon Musk, along with the expiration of EV credits, could further weaken demand for new Teslas," wrote Argus analyst Bill Selesky. Ives, however, saw past the spat. "The BFF/frenemy situation with Musk and Trump has created a soap opera on this front but ultimately Trump wants the US to stay ahead of China in this AI arms race and autonomous is a key factor in who wins AI with Tesla playing a major role on robotaxis," he said. "We expect over the coming months an easing of the federal framework for autonomous with more power going to the federal regulators with states having less authority on the autonomous rules." Tesla's robotaxi would not be the first autonomous vehicle approved for use in the U.S. Alphabet-owned Waymo is currently available in San Francisco, Phoenix, Los Angeles, and Austin. This week, Waymo also announced it had applied for a permit to conduct a test for its autonomous vehicles in New York. Tech giant Amazon also has an autonomous-vehicle initiative called Zoox that is slated to launch in Las Vegas later this year.

Tesla's AI Future Is Worth $1 Trillion, Says Dan Ives: 'Golden Era Of Autonomous' Begins With Robotaxi Launch - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

As Tesla Inc. TSLA prepares to launch its highly anticipated robotaxi service in Austin on Sunday, June 22, Wedbush analyst Dan Ives has predicted a transformative future for the company, pegging its artificial intelligence (AI) and autonomous driving technology at a staggering $1 trillion valuation. What Happened: In a post on X, Ives hailed the upcoming rollout as the start of a "golden era of autonomous" for Tesla, underscoring Elon Musk's vision to pivot the company toward driverless vehicles and AI innovation. Ives' bullish forecast comes as Tesla gears up to debut its robotaxi service, a milestone first hinted at by Musk in January. The launch follows reports of Tesla's Full Self-Driving (FSD) system logging over 1 billion miles of supervised autonomy data by 2024, fueling optimism among investors. However, the move has sparked contention. On June 18, a group of Democratic Texas lawmakers urged Tesla to delay the launch until September, when a new autonomous-driving law takes effect, citing safety concerns over the technology's readiness. Despite the lawmakers' request, Ives remains undeterred, suggesting the AI-driven future could significantly boost Tesla's market value in the coming years. See Also: This Stock Just Popped 30% In 5 Days -- Now Expert Says It 'Looks Potentially Explosive' Why It Matters: Robotaxis are steadily growing in the U.S., as Alphabet Inc.'s GOOGL GOOG Waymo announced it will be further expanding its presence in California. TSLA shares were 1.79% higher in premarket on Friday. The stock was down 15.09% year-to-date, but it has returned 77.37% over the year. About 27 analysts tracked by Benzinga, covering TSLA, have a consensus target price of $309.76 apiece, with a 'hold' rating. The targets range from $19.05 to $500, and the recent ratings by Piper Sandler, Morgan Stanley, and Baird imply a 15.01% upside for the stock. Benzinga Edge Stock Rankings shows that Tesla had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid; however, its value ranking was poor at the 9.62th percentile. The details of other metrics are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, were mixed in premarket on Friday. The SPY was down 0.29% at $595.68, while the QQQ rose 0.19% to $529.16, according to Benzinga Pro data. Read Next: Mark Cuban Corrects Elizabeth Warren As She Slams JNJ, PFE For Higher Prices And Zero Taxes On Big Pharma: 'PBMs Corrupt Healthcare' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors Photo courtesy: Shutterstock GOOGAlphabet Inc$170.04-2.26%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum34.98Growth87.71Quality85.73Value52.19Price TrendShortMediumLongOverviewGOOGLAlphabet Inc$168.96-2.52%QQQInvesco QQQ Trust, Series 1$526.13-0.54%SPYSPDR S&P 500$593.59-0.65%TSLATesla Inc$321.70-0.11%Market News and Data brought to you by Benzinga APIs