Tesla will get new Avenue-high worth goal with excessive hopes for autonomy domination

Tesla (NASDAQ: TSLA) acquired a brand new Avenue-high worth goal from Wedbush’s Dan Ives at this time, who cited excessive hopes for the corporate’s prowess within the autonomous sector.

Ives boosted his worth goal from $500 to $600 at this time, reflecting the agency’s view that “an accelerated AI path for the corporate is now on the horizon and traders are underestimating the transformation underway on the firm.”

In a brand new observe written to traders on Friday, Ives cited that Tesla’s subsequent stage of progress has arrived as Elon Musk has re-entered his position as a “wartime CEO,” which provides the corporate an enormous benefit over its opponents.

Musk, when absolutely dedicated to Tesla, does his greatest work, and Ives believes the corporate’s mark on the autonomous sector will proceed to develop with the assistance of the Trump White Home.

He wrote:

“Musk is now driving Tesla into its subsequent stage of progress as ‘wartime CEO,’ and we count on Robotaxis to be rolled out aggressively to over 30 US cities inside the subsequent 12 months. We estimate the AI and autonomous alternative is price at the least $1 trillion alone for Tesla, and we absolutely count on underneath a Trump White Home over the approaching yea,r these key initiatives will now get fast-tracked because the federal regulatory spiderweb that Musk & Co. have encountered over the previous few years round FSD/autonomous clears considerably underneath Trump. Trump needs the US to remain forward of China on this AI Arms Race, and autonomous is a key think about who wins AI….with Tesla taking part in a serious position on Robotaxis.”

Many of the observe centered on the long-term outlook for Tesla, which is the place a number of the most drastic claims had been made, together with ones that estimated a monstrous valuation for the corporate shifting ahead.

Ives stated Wedbush is underneath the impression that Tesla might attain a $2 trillion market cap as early as the start of 2026 and a $3 trillion valuation by the tip of the 12 months. This progress will likely be primarily pushed by the AI portion of the corporate’s initiatives:

“We imagine Tesla might attain a $2 trillion market cap early 2026 in a bull case state of affairs and $3 trillion by the tip of 2026 as full-scale quantity manufacturing begins of the autonomous and robotics roadmap. The AI valuation will begin to get unlocked within the Tesla story, and we imagine the march to an AI-driven valuation for TSLA over the subsequent 6-9 months has now begun in our view with FSD and autonomous penetration of Tesla’s put in base and the acceleration of Cybercab within the US representing the golden goose for Musk & Co.”

Within the close to time period, the one true subject at hand is deliveries, which Tesla ought to possible have a powerful quarter because of the elimination of the $7,500 EV tax credit score. Ives says he expects a beat of Q3 numbers, pushed by an “enhancing demand out of China.”

He additionally stated that whereas he expects this quarter to be robust, Tesla ought to purpose to return to a run-rate of 500,000 deliveries each quarter, equating to roughly 2 million items per 12 months. This will likely be pushed by new, extra inexpensive fashions, with the tax credit score going away:

“On the near-term supply entrance we’re seeing a stabilization of demand globally that ought to allow Tesla to beat the Avenue’s 3Q supply quantity with enhancing demand out of China. Getting again to a ~500k quarterly run-rate will likely be vital as Tesla now appears to be like to introduce new fashions to its buyer base in 2026. There continues to be weak pockets in Europe however we imagine Tesla is now beginning to see indicators of enchancment in demand with a stronger progress trajectory into 2026.”

Tesla shares are up over 1.7 % up to now at this time, buying and selling at round $430.