Wedbush Raises Tesla Price Target to $600 Amid AI and Robotaxi Growth
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Introduction
Tesla, Inc. (NASDAQ: TSLA) has received a bullish update from Wedbush analyst Dan Ives, who raised the company’s price target from $500 to $600. This upward revision reflects strong confidence in Tesla’s future, particularly regarding its advancements in autonomous driving technology. Ives notes an “accelerated AI path,” suggesting that the market may have underestimated Tesla’s potential to transform the automotive and mobility sectors.
The “Wartime CEO” Effect
The new price target coincides with Elon Musk reclaiming the role of “wartime CEO,” signaling a more aggressive and focused strategy aimed at outpacing competitors in the autonomous vehicle space. Tesla’s upcoming Robotaxi service, slated for deployment in over 30 U.S. cities, represents a potential game-changing expansion for the company and the broader EV industry.
Musk’s Leadership Driving Growth
According to Ives, Tesla’s success in the autonomous sector is closely tied to Musk’s leadership style. When fully engaged, Musk drives the company to achieve ambitious goals at a rapid pace. Ives highlighted, “Musk is now driving Tesla into its next stage of growth as ‘wartime CEO,’ and we expect Robotaxis to be rolled out aggressively to over 30 U.S. cities within the next year.”
Autonomous Vehicle Market Potential
Ives projects the AI and autonomous vehicle opportunity for Tesla could exceed $1 trillion. Regulatory changes under a new administration could accelerate Tesla’s initiatives, and global competition—particularly between the U.S. and China—positions the company as a key player in shaping the future of mobility.
Future Valuation Outlook
Wedbush’s forecast extends beyond short-term performance. Ives estimates that Tesla could reach a $2 trillion market capitalization by early 2026, with the potential to climb to $3 trillion by year-end, driven by autonomous vehicle and robotics projects. “We believe Tesla could reach a $2 trillion market cap early 2026 in a bull-case scenario and $3 trillion by the end of 2026 as full-scale volume production begins of the autonomous and robotics roadmap,” he noted.
Delivery and Production Considerations
While optimistic, Ives acknowledges Tesla’s near-term challenge lies in vehicle delivery. He expects robust Q3 results, supported by increasing demand in China and the removal of the $7,500 EV tax credit. Tesla aims for a quarterly delivery rate of roughly 500,000 vehicles, returning to an annualized rate of about 2 million units.
Global Demand Trends
Ives observes recovery signs in key markets, particularly China, though European demand remains subdued. He remains confident that Tesla will see stronger sales in Europe, aided by new, more affordable models that broaden consumer reach.
Conclusion
As Tesla enters a pivotal growth phase driven by AI and autonomous initiatives, Wedbush’s updated price target reflects market optimism and strategic potential. With shares trading around $430—up more than 1.7%—investors are increasingly confident in Tesla’s ability to meet ambitious delivery goals and expand its Robotaxi network. The coming months will be critical for Tesla as it positions itself as a leader in the autonomous vehicle market.