Wedbush Securities analyst Dan Ives has suggested that Tesla’s (NASDAQ: TSLA) share price will likely see more upside in the coming months due to the company’s advances in artificial intelligence (AI) and autonomous driving.
Specifically, Ives suggested that Tesla’s stock could potentially double within the next 18 months, with self-driving vehicles and AI serving as key growth factors, he said in an interview during an interview with CNBC.
“I think get the popcorn out because I believe Tesla’s stock could ultimately double from here over the next 18 months. It’s been obviously parabolic move, but as you talk about autonomous itself, we think it’s worth $1 trillion,” he said.
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Ives highlighted that while Tesla’s recent stock surge has been notable, its potential for further gains remains strong, especially as autonomous driving capabilities develop. He set a conservative price target of $500 to $600.
The analyst also emphasized that the firm’s margins have stabilized, which could help fuel continued investor confidence. Despite persistent skepticism from critics, Ives believes the company is well-positioned to become a dominant force in both the automotive and AI sectors.
Looking ahead, the expert projected that Tesla’s market cap could eventually approach $2 trillion, and the company would emerge as a major market player by 2025.
Impact of the Trump administration on Tesla
Indeed, the analyst remains bullish on the stock, maintaining that it will likely see more growth during the second Donald Trump administration. He believes the government would likely expedite the rollout of autonomous driving technology at the federal level.
Similarly, with the anticipated removal of the $7,500 EV tax credit, Ives sees Tesla thriving due to its dominant market position.
However, while Ives expressed optimism about Tesla, UBS analyst Joseph Spak warned against speculation around the company’s AI valuation. Spak maintained a ‘Sell’ rating for TSLA, raising his target to $226, up from $197.
“We understand that the market increasingly views TSLA as an AI play rather than an EV player. However, when the value you can tangibly attribute to the auto business reaches the recent average (~17%), the stock tends to enter a downward channel,” he said.
What next for Tesla stock
Meanwhile, a review of Tesla’s technical setup shows that the stock has soared to a 32-month closing high. Technical strategist Larry Tentarelli, in an X post on November 29, pointed out that the shares have the potential for further gains as long as they remain above the $300 level.
Adding fuel to the optimism is the potential for a monthly Price Momentum Oscillator (PMO) cross—an indicator often preceding significant upward moves.
At the close of the last trading session, TSLA was valued at $345.38, ending the day up almost 4%. However, the EV stock is down 2.3% on the weekly chart.
In conclusion, Tesla’s advances in AI and autonomous driving are fueling bullish forecasts, though contrasting views highlight risks. The stock’s future will depend on its ability to deliver in these areas.
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