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Two major investment firms upgraded price targets on Monday, ushering in a 4% boost for Tesla (TSLA, Financial) shares. Wedbush increased the Tesla price target to $515, a 15% upside from Friday's close. The firm also believes that Tesla's autonomous driving and AI advancements could be a big opportunity, given that the incoming Trump administration may be amenable to policy shifts that could favour Tesla. Wedbush's analysts estimate that Tesla's AI and autonomous opportunity alone is worth at least $1 trillion.
Wedbush also offered a more flush case in which Tesla's stock could reach $650 by 2025, citing a favourable regulatory environment and strong demand, especially from China. If Tesla's autonomous vision comes to fruition and the firm achieves the full $2 trillion market cap by the end of 2025.
After Tesla's Q3 performance, Truist Securities increased its price target to $360 from $238 for Tesla based on growing confidence in its cash flow-generating ability, including the possibility of a robotaxi service. Truist Securities also separately raised its Tesla price target. The revision also takes into account how improved political dynamics have benefitted Tesla, with its CEO, Elon Musk, in good form with President-elect Trump.
This article first appeared on GuruFocus.