Wedbush Securities raised its price target for Tesla (TSLA, Financial data) at $515, with an upper estimate of $650, citing significant potential in autonomous driving and artificial intelligence.
The company said faster acceptance of Tesla’s fully autonomous driving technology could be made possible through legislative changes implemented under the Trump presidency.
Wedbush says removing federal regulatory hurdles would allow Tesla to capture what it sees as a potential $1 trillion in the artificial intelligence and self-driving car markets. Supported by the development of autonomous technologies and a steady recovery in demand in the Chinese market, the company estimates that Tesla’s market valuation could reach $2 trillion by the end of 2025. Wedbush also highlighted that the project The company’s Cybercab is expected to help increase its value over the coming years. year.
The research note also highlights that Wedbush’s updated forecast excludes any possible effects from Tesla’s humanoid robot company Optimus, which it sees as an important long-term growth driver.
Apparently set to introduce a new type of car in early 2025, Tesla is targeting the budget-conscious market segment. The company hinted at adopting innovative manufacturing technologies to reduce production costs, perhaps presenting the vehicle as a turning point in electric vehicle affordability. This news sparked speculation about how it would affect Tesla’s competitiveness against other manufacturers and its market share.
Meanwhile, Tesla has officially started shipping the highly anticipated Cybertruck; the first models arrive to consumers in December. Strong pre-order numbers driven by the Cybertruck’s distinctive looks and cutting-edge technologies have drawn close analyst attention to the pickup truck market, typically controlled by incumbent companies.
This article first appeared on GuruFocus.