Wedbush analyst says it could hit $2 trillion in market cap by the end of next year.
Wedbush analyst Dan Ives has raised his price target on Tesla (NASDAQ:TSLA) stock from $400 to $515, making him one of the most bullish Tesla analysts on Wall Street.
Furthermore, Ives predicted that Tesla’s market capitalization could reach $2 trillion by the end of 2025. As of Tuesday morning, Tesla’s market cap stood at around $1.5 trillion.
Ives’s optimistic forecast comes after Tesla stock has already rallied more than 85% year to date.
In a note to clients, Ives estimated that the artificial intelligence (AI) and autonomous (self-driving) vehicle market “opportunity is worth at least $1 trillion alone for Tesla.”
Along with AI technology integration and self-driving vehicles, Ives alluded to President-elect Donald Trump as a bullish factor. “[W]e fully expect under a Trump White House these key initiatives will now get fast tracked,” Ives posited.
Trump’s team recently recommended that the National Highway Traffic Safety Administration (NHTSA) should stop requiring automakers to report crashes involving autonomous driving systems. This supports Ives’s thesis about the incoming Trump administration benefiting Tesla.
Along with those factors, Ives pointed to “very solid Tesla delivery demand” from China as a potential headwind for Tesla stock. Additionally, Ives envisions Musk participating in China tariff discussions and tariff “carve outs” possibly being given to Tesla.
Analysis: Is $500 a “done deal” for Tesla stock?
Ives isn’t the only analyst expecting Tesla stock to reach $500 or more. For example, Fairlead Strategies founder Katie Stockton is looking for the Tesla share price to surpass $500.
Moreover, Mizuho analyst Vijay Rakesh upped his price target on Tesla stock from $230 to $515. Like Ives, Rakesh cited self-driving vehicles as a reason to lean bullish on Tesla.
However, perhaps it’s not extremely optimistic to call for $500 or $515 at this point. After all, the Tesla share price was already at $463.02 at Monday’s market close and approximately $475 during Tuesday’s premarket hours.
Hence, $500 and even $515 are probably “done deals” for 2025. At the current rally’s rate, Tesla stock might even reach $500 and $515 before 2024 is finished.
At that point, analysts will almost certainly need to raise their Tesla stock price targets again. Evidently, despite the misgivings of cautious-minded investors, the Tesla train sometimes just keeps on rolling.
