Wedbush Securities Global Head of Technology Research Dan Ives has noted that Tesla could achieve a $2 trillion market cap in the coming 12 to 18 months. The analyst stated that the company’s advancements in AI and autonomous technology could play a part in Tesla’s rise.
During a segment on CNBC’s Closing Bell, Ives noted that Tesla has a lot of potential to grow even more despite its recent rally. As per the analyst, Tesla’s autonomous driving efforts alone could be worth a trillion dollars, so it would not be a surprise if the electric vehicle maker hits a $2 trillion valuation.
“I believe Tesla is a stock that can ultimately double from here over the next 12 to 18 months. Autonomous itself, we think, is worth $1 trillion. So when you think, today, I view Tesla as the most undervalued name in the market. It is not ridiculous,” Ives noted.
We believe Cybercab and Autonomous is worth $1 trillion alone to the Tesla story @CNBCOvertime @CNBC @CNBCtech 🔥🏆🍿🐂📺🌎 https://t.co/8qQ0MHgaTn
— Dan Ives (@DivesTech) November 30, 2024
The Wedbush analyst also noted in a report that Musk’s rapport with a Trump-led administration could pave the way for Tesla to expedite its self-driving car initiatives. “We fully expect under a Trump White House, those initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co have encountered over the past few years clears significantly,” Ives noted.
Wedbush has rated Tesla stock as Outperform, setting a price target at $400, one of the highest in the Street.
Tesla stock has seen a lot of momentum following Donald Trump’s win in the 2024 U.S. presidential elections. As of Friday’s close, Tesla shares were ahead nearly 40% for the year. The company has also reached a market cap of about $1.07 trillion, making it one of only eight companies in the market with a valuation of more than a trillion dollars.
Watch Dan Ives’ interview with CNBC‘s Closing Bell in the video below.
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