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Tesla (TSLA) shares opened higher today after a senior Wedbush analyst said the launch of robotaxi services this week will officially start the “golden era of autonomous” for the electric vehicle manufacturer.
According to Dan Ives, the automaker’s market cap could double from here to $2 trillion by the end of next year as it extends its robotaxi services to another 25 cities over the next 18 months.
Despite losing some of its gains in recent weeks, Tesla stock is currently up some 50% versus its year-to-date low set in early April.
Wedbush Reiterates $500 Price Target on Tesla Stock
Wedbush reiterated its “Outperform” rating and $500 price objective on TSLA shares in a research note today, indicating potential upside of another 55% from current levels.
On Friday, the investment firm reiterated Tesla “the most undervalued AI play in the market” ahead of its planned launch a limited number of Model Y robotaxis in Austin on June 22.
While the automaker has been grappling with a sales decline this year, Ives sees “this autonomous chapter as one of the most important for [CEO Elon] Musk and Tesla,” which he’s convinced will help unlock significant further upside in the EV stock moving forward.
Ives Downplays Competition for TSLA in Robotaxi Services
Dan Ives agreed that Tesla could face not one, but many, setbacks as it moves to expand its footprint in robotaxi services over the next few years.
However, the company’s “unmatched scale” will prove more than enough to maintain its top position in the autonomous market, he argued in his latest report.
In fact, the analyst believes TSLA will begin “licensing its technology to other auto players” down the road as well.
Ives remains super bullish on Tesla stock also because he expects President Donald Trump’s administration to clear the regulatory hurdles that might have impeded Musk’s autonomous ambitions in the past.
What Is the Consensus on TSLA Shares?
Investors should note that Dan Ives has somewhat of a contrarian view on TSLA stock.
The consensus rating on Tesla shares currently sits at “Hold” only with the mean target of about $292 indicating potential downside of 9% from here.
