Wedbush is lifting its outlook on Tesla (TSLA), citing a major shift in the company’s trajectory amid its AI push.
In a new post on X, Dan Ives, the global head of tech research at the $5.7 billion wealth manager, says the automaker is approaching a turning point driven by artificial intelligence.
Ives lifts TSLA’s price target to $600 based on his view that AI autonomy is accelerating and transforming the firm’s long-term outlook.
“We are raising price target on Tesla to $600, reflecting our view that an accelerated AI autonomous path is now on the horizon in 2026, and investors are underestimating the major transformation underway. We believe this will be the biggest growth chapter in Tesla’s history.”
Earlier this month, Wedbush released an investor note, saying that it was maintaining an “Outperform” rating on the stock with a price target of $500. Ives said Tesla’s AI and autonomous opportunity is worth $1 trillion by itself, with the potential to double if stars align.
“We believe Tesla could reach a $2 trillion market cap by the middle of 2026 in a bull-case scenario. The $1 trillion of AI valuation will start to get unlocked in the Tesla story, and we believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with FSD (full self driving) and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose for Musk & Co.”
$525 billion firm Baird is also bullish on the stock of the electric vehicle maker. Last week, the asset management giant boosted TSLA’s price target from $320 to $548, citing a larger shift from AI software to robotics and self-driving technology.
“The road ahead is chock-full of catalysts.”
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