Analyst on Wall Street Predicts Tesla Shares Reaching $515, Leaving Question of Investment Unanswered
Analyst on Wall Street Predicts Tesla Shares Reaching $515, Leaving Question of Investment Unanswered
Recent developments have significantly shifted things for Tesla (decrease of -4.95% in share price represented by TSLA), leading one notable Wall Street analyst to boost his price prediction for the stock by a substantial $115. Analyst Dan Ives from Wedbush now believes that Tesla shares could potentially reach $515 per unit, marking a new peak among Wall Street experts. This assessment is part of Ives' base scenario.
In his most optimistic projection, Ives values Tesla shares at an impressive $650 per share, as reported by Barron's. Since the U.S. election, Tesla shares have skyrocketed by 84%, but Ives is confident that there's still room for a 10% increase even within his base scenario.
Game-changing momentum for Tesla
The surge in Tesla's share price isn't due to major transformations within the company. Instead, investors appear to believe that the business environment has significantly improved for Tesla's autonomous driving technology and its plans for an autonomous taxi fleet. This optimism stems from CEO Elon Musk's close relationship with President-Elect Donald Trump.
In his report, Ives describes the incoming Trump administration as a "complete game-changer" for Tesla's autonomous and artificial intelligence (AI) narrative over the coming years. He believes that the administration's policies will facilitate Tesla's rollout of its full autonomous driving (FSD) technology to a driverless robotaxi fleet, as well as the implementation of subscriptions for Tesla drivers. However, the challenge for investors is to accurately gauge the financial impact of this opportunity for the company.
Some, like Ives, are convinced that this opportunity could elevate Tesla to a $2 trillion market capitalization within the next 12 to 18 months. Prospective investors should proceed with caution, though, as any further setbacks or missteps in Tesla's mission to make self-driving cars mainstream will inevitably impact the stock price.
For those who can maintain a long-term perspective, it could still be a wise decision to invest in Tesla. The future of Tesla could also encompass growing energy storage sales and the development of humanoid robots capable of enhancing business efficiency. Ives seems to be anticipating these trends ahead of the curve with his estimates.
In light of the optimistic outlook for Tesla's autonomous driving technology and the potential for a driverless taxi fleet, investors are considering where to allocate their funds in the realm of finance, with some opting for investing in Tesla shares. With the change in administration, analysts believe that Tesla's finance prospects could significantly improve, potentially leading to a substantial increase in the company's market capitalization.