Wedbush Securities hiked its price target on Outperform-rated Tesla (NASDAQ:TSLA) to $600 to reflect the firm’s view that an accelerated AI path for the company is now on the horizon. Analyst Dan Ives noted that investors are underestimating the transformation underway at the company.
“We believe Tesla is taking major steps in advancing its AI Revolution path with autonomous and robotics front and center heading into 2026 that will be a game changer and define Tesla’s future,” wrote Ives.
Ives and his team estimate the AI and autonomous opportunity is worth at least $1 trillion alone for Tesla (NASDAQ:TSLA). The expectation is that under a Trump White House over the coming year, the key initiatives will now get fast-tracked as the federal regulatory spiderweb that the company has encountered over the past few years around FSD/autonomy.
The Wedbush view is that Tesla (TSLA) could reach a $2 trillion market cap in early 2026 in a bull case scenario and $3 trillion by the end of 2026 as full-scale volume production begins of the autonomous and robotics roadmap.
Shares of Tesla (TSLA) fell 0.7% in premarket trading on Friday after a 4.4% decline on Thursday when the electric vehicle maker was reported to have seen a slump in European sales again.
Looking ahead, Tesla (TSLA) will issue its third-quarter deliveries report during the first few days of October and will release its third-quarter earnings report later in the month.