Tesla's Stock Soars on Optimistic AI and Autonomous Driving Outlook Under Trump Administration

1 Wall Street Analyst Thinks Tesla Stock Is Going to $515. Is It a Buy? | The Motley Fool

Enough has recently changed for Tesla (TSLA 3.64%) that one prominent Wall Street analyst just raised his price target on the stock by $115. Wedbush analyst Dan Ives now thinks Tesla stock could trade for $515 per share. That's a new high among Wall Street analysts, and it only represents Ives' base case. In his most bullish scenario, Ives sees Tesla shares being worth as much as $650, according to Barron's. Tesla shares have soared 84% since the U.S. election, but Ives thinks there's still over 10% upside from where the stock trades as of this writing, even in his base case. The sharp rise in Tesla shares hasn't come from major changes at the company. Instead, investors seem to believe the landscape has materially improved for the company's self-driving technology and its plans for a fleet of robotaxis. That confidence stems from CEO Elon Musk's role as a close advisor to President-Elect Donald Trump. In his report, Ives wrote that the incoming Trump administration is a "total game changer for the autonomous and AI [artificial intelligence] story for Tesla and Musk over the coming years." He believes that policies from the new administration will help Tesla roll out its full self-driving (FSD) technology to a driverless fleet of robotaxis, as well as with subscriptions to Tesla drivers. The question for investors, though, is just how much that opportunity will be worth for the company. Some, like Ives, believe it's enough to push Tesla to a $2 trillion valuation within the next 12 to 18 months. Investors who are buying the stock now should go in with eyes wide open, though. Any more delays or stumbles in Tesla's quest to make driverless cars mainstream will undoubtedly hit the stock price. For those who can focus on the years and decades ahead, it still might be worth owning Tesla. Along with self-driving cars, the future of Tesla might also include growing energy-storage sales and humanoid robotics that can help businesses be more efficient. Ives seems to be trying to get ahead of the crowd with his estimates.

Tesla Stock Hits New All-Time High as Wedbush Boosts Price Target Again

The analysts lifted the price target to $515 from $400, and said it could hit $650 by the end of next year. Tesla (TSLA) shares traded at a fresh all-time high Monday after Wedbush again raised its price target, arguing the electric vehicle (EV) maker's self-driving car and artificial intelligence (AI) efforts will get a boost from the new Trump administration. Wedbush lifted its price target to $515 from $400, and gave a "bull case" scenario of $650 next year. The move came about a month after Wedbush initially increased its price target to $400 from $300 for similar reasons. The analysts wrote in a note to clients that the "Trump White House the next 4 years will be a 'total game changer' for the autonomous and AI story for Tesla and (CEO Elon) Musk over the coming years." They estimate that the full self-driving (FSD) and AI opportunity is worth at least $1 trillion alone, and they "fully expect" that the Trump administration will fast-track these initiatives "as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly under a new Trump era." The analysts argued that Tesla could have a $2 trillion market cap by the end of 2025 as the self-driving vision takes shape, and because of an expected jump in deliveries of EVs in China. Wedbush maintained an "outperform" rating on the stock. Shares of Tesla recently were up 1% to $440.67 after touching a record $447.41 soon after markets opened. They have added more than three-quarters of their value this year.

Why Tesla Stock Jumped Again Today | The Motley Fool

Tesla (TSLA 6.14%) stock has seemingly gone straight up since the U.S. election. That more than 80% rise has brought it to new all-time highs. Shares jumped another 5.6% today as of 3:25 p.m. ET. And one Wall Street analyst thinks there are good reasons for the recent parabolic move. Wedbush analyst Dan Ives just released a report in which he raised his price target on the stock by $115 per share. His new target is $515, the highest price target for Tesla on Wall Street. Ives sees the recent run in the stock as being logical based on new circumstances brought by the election of Donald Trump. Tesla CEO Elon Musk supported Trump monetarily and vociferously before the election. He's now become one of Trump's advisors with a place in the incoming administration. Ives wrote that Musk's new position is a "total game changer for the autonomous and AI [artificial intelligence] story for Tesla and Musk over the coming years." Many Tesla observers, including Elon Musk, believe that Tesla should be valued more on the potential future income from its self-driving technology than its existing car sales. Ives believes that a new Trump administration will open the door for that technology to quickly gain traction. Ives doesn't think Tesla stock will stop at $515 per share, either. He believes the self-driving technology -- known as full self-driving, or FSD -- can drive Tesla's valuation to over $2 trillion in the next 12 to 18 months. That would imply a stock price of about $625 per share by the middle of 2026. That's another 35% gain from recent prices. Musk has said that investors shouldn't own Tesla stock if they don't feel it will solve issues associated with autonomous driving. The company has made strides sending out new updates that still require driver supervision. The timing could be right for Tesla's technology to hit the streets with the advanced versions and a friendly administration in the White House. That has investors buying into what Ives published today.

Tesla price target raised at Wedbush, Truist; shares up By Investing.com

Investing.com -- Two investment firms lifted their price target on Tesla (NASDAQ:TSLA) shares, sending them rising around 1% in premarket trading Monday. Wedbush analysts raised their price objective from $400 to $515, implying more than 18% upside from the Friday closing price. They believe the Trump administration will be "a total game changer" for the carmaker's autonomous driving and AI story over the coming four years. The investment firm also presented a bull case scenario where Tesla's stock could reach $650 by 2025. Analysts led by Daniel Ives estimate that the AI and autonomous opportunity represents "at least $1 trillion alone for Tesla." They believe that under a Trump administration, these critical initiatives are likely to be expedited, as the federal regulatory challenges Tesla has faced in recent years around Full-Self Driving (FSD) and autonomous technology are expected to ease significantly. "We believe Tesla could reach a $2 trillion market cap by the end of 2025 as the company's autonomous vision starts to take shape along with very solid Tesla delivery demand we expect from the core China market," analysts added. Wedbush also noted that their price target does not include potential gains from Tesla's Optimus project, which could provide significant additional value. Separately, analysts Truist Securities also adjusted its price target for Tesla, raising it to $360 from $238 following the company's Q3 performance. The revision reflects a less cautious perspective on Tesla's ability to generate positive cash flows, especially with the prospect of adding a robotaxi service. This new price target comes despite acknowledging that Tesla's recent stock price surge is not primarily due to its Q3 results or business outlook, but rather CEO Elon Musk's improved relationship with President-elect Trump. Still, Truist maintained its Hold rating on Tesla stock, citing "somewhat elevated risks now that so much value is ascribed to AI & other businesses that have no marketable product, let alone cash flow, today."

Tesla: Wedbush hikes price target on autonomous and AI growth under Trump 2.0 By Investing.com

Investing.com-- Wedbush Securities has raised its price target for Tesla (NASDAQ:TSLA), citing accelerated progress in autonomous and artificial intelligence (AI) initiatives under a regulatory environment expected to be more favorable during the upcoming Donald Trump administration. Wedbush maintains an "outperform" rating and raises its price target to $515 from $400 with a bull-case valuation of $650 per share by 2025. The investment firm sees Tesla's potential in AI and autonomous driving as a $1 trillion opportunity. Analysts highlighted Tesla's Full Self-Driving (FSD) technology as pivotal, estimating its penetration in the Tesla installed base could exceed 50%, altering the company's financial model and margins. "We believe Tesla could reach a $2 trillion market cap by the end of 2025 as the company's autonomous vision starts to take shape along with very solid Tesla delivery demand we expect from the core China market," the analysts wrote. Wedbush also emphasized the strategic importance of Cybercab, Tesla's envisioned autonomous ride-sharing service, as a critical component in achieving this valuation. Wedbush expects the Trump administration to ease regulatory bottlenecks that have hindered Tesla's progress in autonomous driving. The analysts described this shift as a game changer that could fast-track Tesla's goals, aligning them with China's timeline for autonomous technology implementation. China remains a key market for Tesla, and Wedbush anticipates potential tariff carve-outs during trade negotiations in 2025. Wedbush foresees Tesla CEO Elon Musk playing an increasingly influential role in shaping these discussions, mitigating geopolitical risks that could affect Tesla's growth in the region. Wedbush also pointed to Tesla's broader strategy, framing it as a disruptive technology leader rather than merely a car company. The firm expects developments in Optimus, Tesla's humanoid robot, to serve as an additional catalyst for growth, although this is not factored into the current valuation.

Tech Bull Raises Tesla Price Target To $515, Predicts $1 Trillion AI Opportunity Under Trump White House: 'Total Game Changer' - Tesla (NASDAQ:TSLA)

Wedbush Securities analyst and Tesla Inc TSLA bull Dan Ives said on Sunday that he is raising the price target on the EV giant's stock from $400 to $515. What Happened: "...we believe the Trump White House will be a 'total game changer' for the autonomous and AI story for Tesla and Musk over the coming years," Ives said in a post on social media platform X. "Bull case is $650 for 2025. AI/autonomous opportunity is worth at least $1 trillion." Ives believes Tesla could touch a market cap of $2 trillion by 2025-end with the company's vision for autonomous driving finding a more concrete structure. Wedbush's current price target, however, assumes no value for the company's Optimus humanoid robot which Ives said "could be a major upside catalyst for the Tesla story." Why It Matters: Tesla stock closed up 4.3% at $436.23 on Friday. The stock is up by around 76% year-to-date, according to data from Benzinga Pro. 33 analysts together have a consensus rating of "Buy" on Tesla. Brokerage Stifel gave Tesla a price target of $411 earlier this month while maintaining a "buy rating." Many, including Ives, are hopeful that Musk's newly forged friendship with President-elect Donald Trump will enable a better environment for the deployment of autonomous vehicles while his other policies against EVs will harm smaller rival players, effectively reducing competition for Tesla. Last week, it was reported that a trump transition team responsible for devising a 100-day strategy for automotive policy wants the incoming administration to abolish the requirement to report car crashes if advanced driver assistance or autonomous driving technologies are engaged within 30 seconds of impact. Tesla has been a critic of the requirement. Musk's Tesla is developing a set of advanced driver assistance features called full self-driving with which it intends to enable vehicle autonomy in due time. In November, it was also reported that Trump is planning to end the $7,500 consumer tax credit for purchasing EVs under the Inflation Reduction Act (IRA). "In my view, we should end all government subsidies, including those for EVs, oil and gas," Musk then wrote on X. Check out more of Benzinga's Future Of Mobility coverage by following this link. Read Next: Tesla's Cybertruck Production Rate Was Reduced Even Before December's Pause, Says Researcher Image via Tesla Market News and Data brought to you by Benzinga APIs