Tesla (TSLA) shares hit an all-time high of $449.39 on Monday, bolstered by Wedbush’s latest price target increase. The investment firm raised its target to $515 from $400, projecting a “bull case” scenario of $650 for next year, attributing this optimism to anticipated benefits under the incoming Trump administration. This adjustment follows a previous hike from $300 to $400, driven by similar expectations.
Wedbush’s analysts argue that the next four years under Trump will fundamentally change the landscape for Tesla’s autonomous driving and artificial intelligence (AI) endeavors. They estimate the potential value of Tesla’s full self-driving (FSD) and AI developments at no less than $1 trillion. They anticipate that the regulatory hurdles Tesla has faced will significantly diminish, allowing for faster progress in these critical areas.
The analysts foresee Tesla potentially reaching a $2 trillion market capitalization by the end of 2025, fueled by advancements in autonomous technology and strong EV delivery growth in China. This outlook is based on an expected easing of federal regulations which have historically slowed Tesla’s FSD and autonomous projects.
Despite these high expectations, Wedbush maintained an “outperform” rating on Tesla’s stock, suggesting confidence in the company’s growth trajectory under the new administration’s policies.
On the trading front, after hitting a record high, Tesla shares remained up 2.47% at $447.00. This year, the $1.4T market cap company has experienced an impressive gain of nearly 80%, driven by strong market enthusiasm for Tesla’s strategic direction and the perceived positive impact of political changes on its business model.
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