Wedbush Securities analyst Daniel Ives significantly increased Tesla’s 12-month target price from $350 to $500 on Friday, setting the highest expectation on Wall Street. He also stated that, under a bull market scenario, Tesla could reach a market capitalization of $2 trillion by the end of 2026. As Tesla prepares to launch its self-driving taxi service, Cybercabs, in June, the Tesla enthusiast and analyst Daniel Ives has significantly raised Tesla’s 12-month target price from $350 to $500, establishing the highest forecast on Wall Street.
In his research report, Ives said: “We believe that the golden age of autonomous driving is now knocking on Tesla’s door, and the launch in Austin next month will mark the beginning of a key new chapter in Musk and his team’s growth.” This Tesla bull analyst views autonomous driving technology as the core driver for Tesla’s future profit margin expansion and valuation increase. He also stated that, under a bull market scenario, Tesla could reach a market capitalization of $2 trillion by the end of 2026. Ives: Tesla’s Valuation Reshaped by Autonomous Driving Ives pointed out that, with Musk stepping down from DOGE and the potential relaxation of regulatory barriers by the Trump administration, Tesla is in a favorable position to advance its Full Self-Driving (FSD) and AI objectives. Ives said: “We estimate that the opportunities in AI and autonomous driving are worth at least $1 trillion for Tesla, and we fully expect that these key initiatives will be rapidly advanced under the Trump White House, as the federal regulatory barriers that Musk and his team have encountered in recent years around FSD/autonomous driving will be significantly cleared under Trump. ” In terms of AI positioning, Ives described Tesla as the “most undervalued AI stock in the market today,” ranking it alongside top technology companies such as Nvidia, Microsoft, OpenAI, Palantir, Amazon, Meta, and Alphabet as long-term AI winners. Despite the optimistic outlook, Ives also acknowledged that the transformation will not be smooth sailing. He concluded: “Rome wasn’t built in a day… and neither will Tesla’s autonomous driving and robotics strategic vision. There will be many setbacks. But given its unparalleled scale and scope globally, we believe Tesla has the opportunity to dominate the autonomous driving market and license its technology to other car manufacturers in the US and around the world in the future.” From a more macro perspective, Tesla’s unique positioning in 2025 cannot be ignored.Elon Musk controls an empire that spans almost all strategic frontier technologies crucial for the United States to ensure dominance in the 2030s, including electric vehicles, AI, space technology, power grid technology, tunnels, and even neural interfaces.
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