Wedbush has raised its price target for Tesla (TSLA) from $515 to $550, maintaining an "Outperform" rating, driven by optimism around the company's autonomous and AI initiatives under the Trump Administration. The report highlights a potential $1 trillion valuation for Tesla's AI and autonomous opportunities, with expectations that regulatory hurdles will diminish, accelerating Tesla's autonomous vehicle timeline. Analysts Daniel Ives, Steven Wahrhaftig, and Sam Brandeis express confidence in Tesla's growth, stating, "The march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with FSD and autonomous penetration of Tesla's installed base."
The report also notes the potential for Tesla to benefit from a more favorable regulatory environment, which could fast-track autonomous and AI projects. The analysts believe Tesla's strategic positioning in the AI space makes it "the most undervalued AI play in the market today." Additionally, the report suggests that Tesla's delivery demand, particularly in China, will be a key growth driver in 2025.
Tesla's current stock price is $419.40, down 1.1% from the previous close.