On Monday, Wedbush Securities updated its outlook on Tesla (NASDAQ:TSLA) stock, increasing the electric vehicle maker's price target to $515, up from the previous $400. The firm sustained its Outperform rating on the stock. Tesla's shares, currently trading at $436.23, have shown remarkable momentum with a 145% surge over the past six months.
According to InvestingPro data, the stock is trading near its 52-week high of $436.30. The revision reflects the analyst's expectation that the Trump administration over the next four years will significantly benefit Tesla's autonomous and artificial intelligence (AI) strategies.
The analyst believes that the potential for Tesla's AI and autonomous technology is immense, valuing the opportunity at a minimum of $1 trillion.
The anticipated easing of federal regulations under the Trump administration is expected to accelerate Tesla's full self-driving (FSD) and autonomous initiatives. With a current market capitalization of $1.4 trillion and a P/E ratio of 108.5, Tesla trades at premium multiples, reflecting high growth expectations.
InvestingPro analysis suggests the stock is currently trading above its Fair Value. These developments, along with robust vehicle delivery demand, particularly from the Chinese market, are seen as key growth drivers for Tesla.
Wedbush's bullish scenario sets a target of $650 for Tesla by 2025, with the prospect of the company achieving a $2 trillion market capitalization by the end of that year. This optimistic forecast is based on expectations that Tesla's vision for autonomous technology will begin to materialize and contribute significantly to the company's valuation.
The analysis also notes that the current price target does not account for the potential value of Tesla's Optimus project, suggesting that this could provide further upside to the company's narrative in the future.
The firm's Outperform rating indicates confidence in Tesla's ability to exceed the performance of the broader market. Tesla maintains a "GOOD" overall Financial Health Score according to InvestingPro, with particularly strong momentum metrics.
Investors seeking deeper insights can access Tesla's comprehensive Pro Research Report, along with 20+ additional ProTips and extensive financial metrics available through InvestingPro's premium service.
In other recent news, a group of leading technology companies, known as the Magnificent Seven—Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), Meta (NASDAQ:META), and Tesla—has seen a surge in collective valuation surpassing $18 trillion, according to Nigel Green, CEO of deVere Group. This is a first in market history and Green has expressed confidence that these tech giants will maintain their market dominance into 2025.
In a separate development, Tesla CEO Elon Musk has publicized a "settlement demand" from the Securities and Exchange Commission (SEC) regarding his dealings with Twitter shares.
Tesla has also launched its "Actually Smart Summon" feature in China, which allows Tesla vehicles to autonomously navigate parking lots. Furthermore, Gary Black, Managing Partner at The Future Fund LLC, has outlined a bullish outlook for Tesla shares, setting a price target of $478.
Lastly, Elon Musk has become the first individual to amass a net worth of over $400 billion, primarily driven by a significant insider share sale of his aerospace company, SpaceX, which increased Musk's net worth by approximately $50 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.