Elon Musk’s support for Donald Trump during his presidential campaign has sparked investor hopes for reduced federal regulations on autonomous vehicles under a potential Trump administration. Tesla’s Full Self-Driving (FSD) technology, powered by advanced algorithms and sensors, remains central to the company’s growth strategy. The U.S.-based automaker aims to launch a robotaxi service by 2025, potentially boosting demand for Tesla vehicles.
AI-Driven Autonomy
Tesla leverages artificial intelligence-based data processing to enable autonomous driving in its vehicles. While FSD can already manage most driving tasks, it still requires constant human supervision. However, CEO Elon Musk is confident that FSD will surpass human drivers in capability by early 2025.
Analyst Raises Price Target
Dan Ives, an analyst at Wedbush Securities and long-time Tesla advocate, has reaffirmed his ‘Buy’ rating for Tesla shares. On Sunday, Ives raised his price target from $400 to $515 per share, as reported by MarketWatch. In a best-case “bull” scenario, he foresees the stock climbing as high as $650 per share.
Ives believes that a second Trump term could be a transformative period for Tesla and Musk, particularly in advancing autonomous and AI-driven technologies. “We believe the path to a $2 trillion valuation for Tesla has now begun, likely within the next 12 to 18 months,” Ives wrote in his report.
Currently, Tesla’s market capitalisation stands at $1.4 trillion. Ives’ new price target would value the company at approximately $1.7 trillion, with a bullish peak reaching about $2.1 trillion.
Stock Surge Fuels Optimism
Another reason for the upward price revision is Tesla’s recent stock performance, which surged significantly following Trump’s election victory. The company’s shares closed Monday’s NASDAQ trading session at $463.02, up 6.14%. In pre-market trading on Tuesday, shares rose an additional 2.44% to $474.32.
Investors are betting that a favourable regulatory environment and Tesla’s technological advancements could drive the company’s value even higher in the coming years.
