Ives estimates that autonomous driving represents a $1 trillion opportunity for Tesla as the Trump administration clears regulatory hurdles. He maintains an outperform rating and a $400 price target on Tesla's stock, predicting that the company's valuation could reach $1.5 trillion and then $2 trillion over the next 12 to 18 months. Ives also believes that Tesla is currently the most undervalued AI play in the stock market.
Key takeaways:
- Tesla's stock rose by 8% to $346.81, increasing the company's market cap to $1.1 trillion, following reports that President-elect Donald Trump's transition team is prioritizing the creation of a federal framework for fully autonomous cars.
- Wedbush analyst Dan Ives predicts that Tesla's valuation could reach $2 trillion, largely due to CEO Elon Musk's influence in the Trump administration and the potential for autonomous driving, which he estimates represents a $1 trillion opportunity for the company.
- Musk, who contributed more than $100 million to Trump's election campaign and has become a top adviser, has been promoting the idea of autonomous Tesla vehicles for years, and last month unveiled the Cybercab, a self-driving EV with no steering wheel or pedals.
- Ives maintains his outperform rating and $400 price target on Tesla's stock, and believes that the company is the most undervalued AI play in the stock market today.