Tesla (NASDAQ:TSLA) sparks a wide range of opinions on Wall Street. Some believe its upcoming opportunities, such as robotaxis, FSD, and Optimus, justify its extremely lofty valuation, while others argue these efforts remain speculative and shouldn’t yet be factored in. Furthermore, given its trouble selling enough cars, the bears believe the company is not deserving of a place amongst the upper echelons of the market cap ladder.
It’s not hard to tell which side of the argument Wedbush analyst Daniel Ives favors. Already the Street’s biggest TSLA bull, Ives has become even more optimistic about Tesla’s prospects, raising his price target to a Street-high of $550, implying a 32.5% upside in the year ahead. Needless to say, Ives rates TSLA stock an Outperform (i.e., Buy). (To watch Ives’ track record, click here)
As for that bullish move, Ives lays out his case: “We have growing confidence in the demand delivery story for 2025 along with a fast tracking of the autonomous future under the Trump Administration. Our time spent speaking to many in the Beltway the last few weeks give us a growing confidence the Trump White House the next 4 years will be a ‘total game changer’ for the autonomous and AI story for Tesla and Musk over the coming years.”
As has already become clear, the Trump administration is likely to adopt a “regulatory-friendly” stance, which could boost Tesla’s stock by accelerating the timeline for autonomous cars and full self-driving (FSD) technology starting this year. This shift would also provide a “major tailwind” for the launch of the Cybercab. While the Trump White House is expected to roll back EV incentives, such as the $7,500 tax credit, and ease emissions standards, it is also likely to prioritize AI innovation, including autonomous technology. This dual approach could significantly benefit Tesla and other companies in the space, such as Waymo (Alphabet).
Ives reckons that Tesla’s AI and autonomous driving opportunities alone could be worth over $1 trillion, believing that as the autonomous vision “starts to take shape” along with “very solid” delivery demand anticipated in its core Chinese market this year, Tesla could reach a $2 trillion market cap by the end of 2025. “Importantly,” Ives added, “our price target conservatively assumes no value today for Optimus which could be a major upside catalyst for the Tesla story.”
So, that’s one bullish take, but there are plenty of different ones on Wall Street. In fact, based on a mix of 13 Buys, 12 Holds, and 9 Sells, the analyst consensus rates TSLA stock as a Hold. The average price target suggests that most believe the shares are too expensive right now; at $329.63, it points toward a 20% decline over the one-year timeframe. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.