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Wedbush just dropped a bombshell on Tesla (NASDAQ:TSLA) investors, hiking its price target to $515 and unveiling a bull case scenario that could hit $650 by 2025. Analyst Daniel Ives called a Trump presidency a potential game changer for Tesla's autonomous and AI ambitions, with regulatory red tape expected to vanish like a bad dream. The firm sees Tesla's autonomous driving and AI markets alone worth a jaw-dropping $1 trillion, setting the stage for a $2 trillion market cap by the end of 2025. And here's the kicker: none of this even factors in Tesla's Optimus humanoid robot, which could add serious rocket fuel to its valuation in the years ahead.
The timing couldn't be better. Tesla shares have rocketed 30% in just six weeks, crushing rivals like Rivian (NASDAQ:RIVN) and Lucid (NASDAQ:LCID), while old-school automakers Ford (NYSE:F) and GM (NYSE:GM) stumble. Wedbush is hyped about Tesla's accelerated plans for projects like the Cybercab, alongside stabilizing delivery demand from China, which has been a cornerstone of its growth. Even Truist Securities joined the party, lifting its price target to $360 on expectations of stronger cash flow and a future robotaxi servicethough they're still cautious about the risks tied to Tesla's AI moonshots.
What's clear? Tesla's not just playing the EV game anymoreit's rewriting the rules entirely. With AI, autonomous driving, and possibly even humanoid robots in the mix, this is a company that's built to dominate the next decade. Investors eyeing both short-term gains and long-term potential might want to buckle up, because Tesla's story is only just getting started.
This article first appeared on GuruFocus.