Despite suspending the prioritization of electric vehicles (EV) and the transition to more sustainable energy sources, Donald Trump’s return to the White House is widely seen as bullish for Tesla (NASDAQ: TSLA).
Between Tesla CEO Elon Musk’s political alliance with the Republican president and the company’s expected ability to better weather the new headwinds than its competitors, many analysts and investors are forecasting a significant upside for TSLA stock.
Indeed, the EV maker’s shares are already up 3.78% in 2025 and 100.23% in the last 12 months, with their press time price of $419.12.
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Wall Street analyst updates TSLA stock price target from $315 to $500
Optimism is also evident in the latest Wall Street analyst revisions of Tesla stock price targets. Specifically, on January 21, Piper Sandler offered a $185 forecast upgrade when its Alexander Potter estimated TSLA would climb to $500 in the coming 12 months.
The 19.3% upside was justified by the expectations that Tesla’s ‘real world’ artificial intelligence, such as its autonomous cars technology – FSD – will make the company a far more enticing investment.
Could the Trump administration be the biggest Tesla stock catalyst?
The tailwinds are likely to only grow stronger with the waxing of Elon Musk’s influence in the Federal government as he now has the President’s ear, which he may or may not use to help resolve disputes he has with various agencies, including those that involved possibly FSD-related fatalities.
Furthermore, should Tesla rise to the occasion and release commercial humanoid robots and ‘robotaxis’ as Musk hinted in 2024, it would finally remove doubt about its place among the ranks of big tech corporations.
Such a development would also likely supercharge TSLA shares as, for example, the 10 biggest AI companies grew more than $8 trillion since late 2022.
Additionally, the boons on the technology side were also cited by Wedbush’s Dan Ives when he upgraded his Tesla price target from $515 to $550 on January 22.
Specifically, the analyst explained that Wedbush has a ‘growing confidence in the demand delivery story for 2025 along with a fast tracking of the autonomous future under the Trump Administration.’ ‘We view this as a golden era for Musk and Tesla into 2025,’ the famous tech bull added.
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