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Wall Street analyst highlights impact of AI on Tesla's growth
Trump's influence and Tesla's future
Artificial intelligence (AI) technology could propel Tesla to $2 trillion in value in the next few months, according to Wall Street analyst Dan Ives. Ives, who works at Wedbush Securities, said the car and technology company’s stock could see a big increase due to its foray into technology. Tesla specializes in autonomous driving as well as AI.
Autonomous vehicles are expected to increase the company’s value, which is what most automakers are currently trying to achieve, Ives said in an interview with CNBC. He added that the two initiatives could be the decisive drivers that will drive the company’s growth over the next 18 months.
Wall Street analyst highlights impact of AI on Tesla's growth
Ives said the market needs to watch and see how the company's stock doubles in the next 18 months from now. "I think you should get your popcorn out because I believe Tesla's stock could double in the next 18 months from here. It's obviously been a parabolic move, but when you talk about autonomy itself, we think it's worth $1 trillion," he said.
He explained that while Tesla is experiencing a nice rise, the stock still has growth potential. According to Ives, he thinks that the company's autonomous driving and artificial intelligence initiatives can increase its stock to $600 in the expected period. He also mentioned the company's stable margin, which is an indicator that will increase investor confidence.
While skeptics dismiss the company’s future growth potential, Ives believes they are simply refusing to see the bigger picture. He also believes the company’s market cap could reach $2 trillion, and predicts that will happen in the same time frame. Considering Tesla has already made a mark in the auto industry, Ives believes it could become a major player in the industry in the next few years.
Trump's influence and Tesla's future
Ives believes Tesla stock will benefit greatly from Donald Trump’s second administration. With the close ties between Donald Trump and Tesla CEO Elon Musk, Ives believes autonomous driving could be something to look forward to at the federal level. He added that the removal of the $7,500 tax credit on electric vehicles could also help Tesla’s market position.
Meanwhile, other analysts remain skeptical of the company’s AI initiative, including UBS analyst Joseph Spak, who warned of the dangers of speculating on the company’s valuation and dented the optimism shared by Dan Ives. Spak said he still maintained a sell rating on the stock, although he raised his target to $226 from $197.
“We understand that the market increasingly views TSLA as an AI player rather than an EV player. However, once the value you can concretely attribute to the automotive business reaches the recent average (~17%), the stock tends to enter a downward channel,” he said.
$TSLA is coming off a 32-month closing high. Bullish chart above $300. A monthly PMO cross would be a plus soon. pic.twitter.com/7GHJEFiz8v
— Larry Tentarelli, Blue Chip Daily (@bluechipdaily)
Meanwhile, a look at the company’s stock shows it closing at a 32-month high. According to Larry Tentarelli, another analyst at X, the stock still has upside potential as long as it remains above the $300 level. He added that $TSLA has a potential monthly Price Momentum Oscillator (PMO), fueling optimism.
