Wedbush Securities has revised its price target for Tesla, hiking it from $300 to $400 and maintaining an outperform rating. Tesla's stock surged 6% during midday trading, reaching approximately $340. The brokerage highlighted that Tesla's artificial intelligence and autonomous vehicle prospects could be valued at an astonishing $1 trillion, and with Donald Trump returning to the White House, these initiatives are poised to gain significant momentum.
Analysts, including Daniel Ives, emphasized that this upcoming administration could facilitate the removal of regulatory hurdles that have challenged Tesla in recent years, particularly regarding full self-driving technology. Elon Musk, having played a pivotal role in Trump's 2024 campaign, may now see his ambitions for autonomous driving and AI accelerate.
Ives stated, 'The $1 trillion of AI valuation will start to get unlocked in the Tesla story, and we believe the march to a $1.5 trillion and $2 trillion valuation for Tesla over the next 12 to 18 months has now begun in our view.' Despite potential challenges for the broader electric vehicle industry, particularly regarding EV tax incentives, the report underscores a bullish outlook for Tesla, noting that tariffs are likely to deter cheaper Chinese EV competitors like BYD and Nio.
Furthermore, Trump suggested appointing Musk as head of a government efficiency commission, which would potentially amplify Musk’s influence in the administration. Overall, this alignment between Tesla and the Trump administration signals a promising path ahead for the company’s AI initiatives..