EV (electric vehicle) maker Tesla (TSLA) won a new Street-high price target from Wedbush Securities’ Daniel Ives. The long-time Tesla bull lifted the price target on TSLA stock to $550 from $515, implying 32.5% upside potential from current levels. Ives believes that CEO Elon Musk and Tesla are entering the golden era in 2025 under the new Trump administration. Ives continues to maintain his Buy view on Tesla shares and views the company as a disruptive technology player globally.
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Ives’ Bull Case for Tesla and Musk
Ives, a five-star analyst on TipRanks, has always been a huge supporter of Musk and Tesla. His latest price target lift shows growing confidence in Tesla’s ability to improve its performance beyond expectations. Let’s understand Ives’ bull case for the two.
- Solid Demand Story – Ives is confident that Tesla will have solid demand and delivery prospects in 2025, backed by the fast-tracking of autonomous vehicles (AV) and FSD (full self-driving) under the new administration. Ives expects a huge rebound in demand from China, which has recently been a drag for Tesla. Additionally, Tesla could witness a more than 50% penetration from its FSD ambitions, Ives added.
- Game Changing Trump Administration – Musk has been a big supporter of Trump in his presidential campaign. His close ties with the President are sure to bring in beneficial policies and be a “total game changer” for the AV and AI (artificial intelligence) markets. Ives views a roughly $1 trillion opportunity for Tesla in the AV and AI spheres.
- $2 Trillion Market Cap – Ives believes that Tesla could reach a $2 trillion market capitalization by the end of 2025, following positive demand and delivery momentum from Trump’s favorable policies. Importantly, Ives noted that his current Tesla stock valuation does not include the potential scale of Musk’s humanoid robot venture Optimus. Ives’ Bull case scenario has a price target of $650 on Tesla stock.
Overall, Ives returned highly optimistic after his conversations with government officials in the last few weeks. He believes the next four years under the Trump administration will be very beneficial for Tesla and Musk, calling it a “golden era” for the duo. Tesla’s Cybercab timing is also favorable as the CEO harbors friendly relations with the new administration.
Is Tesla Stock a Good Buy?
Ahead of Tesla’s Q4 FY24 results due next week, analysts prefer to remain on the sidelines on the stock. Not all analysts share the same enthusiasm about Tesla as Ives.
On TipRanks, TSLA has a Hold consensus rating based on 13 Buys, 12 Holds, and nine Sell ratings. Also, the average Tesla price target of $329.63 implies 20.6% downside potential from current levels. Meanwhile, TSLA shares have zoomed 98.5% in the past year.
