Wedbush Analyst Raises Tesla Price Target to $500, Cites Autonomous Driving Boom

Wedbush analyst Dan Ives boosted Tesla’s price target from $350 to $500, spotlighting the electric vehicle giant’s leadership in autonomous driving technology as a key driver for growth. In an interview with Bloomberg, Ives shared his bullish outlook, emphasizing Tesla’s pivotal role in the AI and autonomy revolution—a development that could reshape the EV industry for enthusiasts and owners alike.

Tesla’s Autonomous Tech: A Game-Changer for EVs

Tesla has long been a pioneer in electric vehicle innovation, but Ives points to its advancements in Full Self-Driving (FSD) technology as the cornerstone of its future success. The analyst estimates that the AI and autonomy sector could generate at least $1 trillion in value for Tesla alone. This projection hinges on Tesla’s ability to scale its FSD system, which enables vehicles to navigate complex urban environments with minimal human intervention. For EV owners, this means safer, more efficient drives, potentially reducing the cognitive load of long commutes or dense traffic scenarios.

Ives also highlights Tesla’s Cybercab—a fully autonomous robotaxi—as a critical piece of the puzzle. With FSD penetration potentially reaching 50% or more, Tesla could see significant improvements in its financial margins. This shift would allow the company to offer subscription-based autonomous services, creating a new revenue stream while enhancing the ownership experience for Tesla drivers.

Regulatory Tailwinds Under a Trump Administration

A key factor in Ives’ optimism is the regulatory environment. He notes that under a Trump White House, federal policies could accelerate the adoption of autonomous vehicles. “We fully expect under a Trump White House these key initiatives will now get fast-tracked as the federal regulatory spiderweb that Musk & Co. have encountered over the past few years around FSD/autonomous clears significantly,” Ives stated in his X post. This potential easing of regulations could allow Tesla to deploy its autonomous fleet more rapidly, particularly in the U.S., where the Cybercab is expected to gain traction.

For EV enthusiasts, this means faster access to cutting-edge technology. However, it also raises questions about safety standards and infrastructure readiness, as widespread FSD adoption will require robust traffic systems and public acceptance of driverless vehicles.

Tesla’s Market Position and Future Valuation

Ives predicts Tesla could hit a $2 trillion market cap by the end of 2026 in a bull-case scenario, driven by its AI and autonomy advancements. He also sees the $1 trillion AI valuation starting to unlock within the Tesla ecosystem, with FSD leading the charge over the next 12 to 18 months. This ambitious forecast positions Tesla as a leader not just in the EV market but in the broader AI-driven tech landscape.

For EV owners, this growth translates to more than just stock value. Tesla’s focus on autonomy could lower operational costs—such as reduced insurance premiums due to fewer accidents—and increase vehicle longevity through over-the-air software updates. On the industry level, Tesla’s success may pressure competitors like Rivian or Lucid to accelerate their own autonomous programs, fostering innovation across the sector.

Why Tesla Stands Out in the EV Space

Ives remains confident in Tesla’s unmatched scale and vision. “We believe Tesla has the opportunity to own the autonomous market and the road to license its technology to other auto players both in the US and around the globe,” he wrote. This strategic advantage could solidify Tesla’s dominance, offering EV enthusiasts a front-row seat to a transformative era in transportation.

With its aggressive push into autonomy, Tesla continues to redefine what’s possible for electric vehicles. For owners and enthusiasts, the future promises not just smarter cars but a reimagined driving experience—one where AI takes the wheel.

Photos courtesy of Tesla / Bloomberg