Tesla (NASDAQ:TSLA) is basking in sunny days despite it being wintertime for most. The EV leader’s post-election surge has been nothing short of extraordinary. Trump’s return to the White House served as the catalyst for this overcharged rally, driving the stock up by 56%.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
With Tesla CEO Elon Musk about to play an important role in shaping the new administration’s tone, it’s clear investors are bullish about the company’s prospects. This optimism is mirrored by long-time TSLA advocate, Wedbush analyst Daniel Ives.
“We believe the Trump White House the next 4 years will be a ‘total game changer’ for the autonomous and AI story for Tesla and Musk over the coming years,” Ives opined.
The analyst thinks the AI and autonomous market represents at least a $1 trillion opportunity for Tesla alone. Ives anticipates that, under a Trump administration, these key initiatives will be accelerated as the federal regulatory hurdles that Tesla has faced in recent years regarding FSD and autonomy will ease significantly.
This regulatory shift is expected to accelerate Tesla’s progress on key objectives, potentially advancing timelines for its 2026/2027 goals to keep pace with China’s advancements in autonomous driving.
However, before then, Ives thinks Tesla will be hitting another milestone. Before 2025 is out, the analyst expects the stock will hit a $2 trillion market cap as the company’s autonomous vision “starts to take shape along with very solid Tesla delivery demand we expect from the core China market.”
China is a bit of an unknown here, considering the potential retaliatory measures from Beijing on the back of increased China tariffs. Yet, Ives expects to see “some carve-outs” for Tesla on the tariff front, anticipating Musk will play an increasingly significant role in a Trump administration as discussions around China tariffs take center stage early next year.
With all the above about to play out, Ives rates Tesla shares an Outperform (i.e., Buy), while raising his price target from $400 to a Street-high $515, suggesting the shares will gain 18% in the months ahead.
“Importantly,” the analyst added, “our price target conservatively assumes no value today for Optimus which could be a major upside catalyst for the Tesla story over the coming years.” (To watch Ives’ track record, click here)
Elsewhere on the Street, sentiment is lukewarm at best. The analyst consensus rates the stock a Hold (i.e., Neutral), based on 13 Hold 12 Buy, and 9 Sell recommendations. The average price target sits at $267.79, implying a 42% downside from current levels. (See Tesla stock forecast)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
