EV maker Tesla (TSLA) could reach a $2 trillion valuation in the next 12 to 18 months, according to Wedbush, thanks to its focus on full self-driving (FSD) technology, autonomous vehicles, and the new Cybercab. Analyst Dan Ives believes that Tesla’s investments in AI and self-driving tech, combined with Elon Musk’s influence on the Trump administration, could speed up regulatory approval for autonomous vehicles.
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Indeed, the U.S. Transportation Department is prioritizing a framework for self-driving cars, which Ives sees as a major boost for Tesla. He estimates that Tesla’s AI and autonomous tech alone are worth $1 trillion and expects federal regulations to move faster under a Trump-led White House, which would clear roadblocks that have so far slowed progress. Ives also notes that the potential for a new AI Czar role could benefit Tesla’s broader AI initiatives.
Furthermore, Tesla is well-positioned to thrive without a $7,500 EV tax credit, thanks to its massive scale and dominance in the EV market. Ives even went as far as to say that Tesla is the most undervalued AI stock today and expects autonomous tech fast-tracking to dominate investor focus. As a result, Wedbush maintains an Outperform rating on the stock with a $400 price target. It’s worth noting that Ives is a four-star analyst with a 62% success rate on Tesla stock and an average return of 14.2% per rating.
Tesla’s Gigafactory Is Reportedly Violating Environmental Regulations
In a separate development, Tesla’s gigafactory in Austin, Texas, is reportedly violating environmental regulations despite warnings from the EPA, according to The Wall Street Journal. The plant, which aims to produce 5,000 Model Y SUVs per week, has been accused of emitting hazardous toxins from its massive casting furnace and discharging untreated water containing harmful chemicals into the sewer system.
This is interesting because Tesla is on a mission to reduce carbon emissions but is allegedly contributing to pollution itself at the same time.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 11 Buys, 14 Holds, and nine Sells assigned in the past three months, as indicated by the graphic below. After a 39% rally in its share price over the past year, the average Tesla price target of $233.67 per share implies 32.28% downside risk
