Tesla Price Target Updates

Two investment firms have raised their price targets for Tesla (NASDAQ: TSLA) shares, leading to a 1% increase in premarket trading on Monday.

Wedbush Analysis

Wedbush analysts increased their price objective from $400 to $515, indicating an over 18% upside from Friday's closing price. They predict that the Trump administration will significantly influence Tesla's autonomous driving and AI developments over the next four years. In a bullish scenario, Tesla's stock could reach $650 by 2025.

According to analysts led by Daniel Ives, the AI and autonomous vehicle market presents a potential opportunity of at least $1 trillion for Tesla. They anticipate that under a Trump administration, the regulatory challenges surrounding Full-Self Driving (FSD) and other autonomous technologies will ease, accelerating Tesla's initiatives.

They project that Tesla could hit a $2 trillion market cap by the end of 2025, driven by its autonomous vision and strong delivery demand, particularly from the Chinese market. Furthermore, Wedbush's price target does not account for potential increases from the company’s Optimus project, which could add significant value.

Truist Securities Update

Separately, analysts at Truist Securities raised their price target for Tesla from $238 to $360, following the company's Q3 performance. This adjustment reflects a more optimistic stance on Tesla's capacity to generate positive cash flow, particularly with the potential addition of a robotaxi service.

However, Truist noted that Tesla's recent stock surge is not largely tied to its Q3 results or business forecast, but is influenced by CEO Elon Musk's better connection with President-elect Trump. They maintained a Hold rating on Tesla shares, citing increased risks due to high valuations ascribed to AI and other business sectors that currently lack marketable products or cash flow.