Wedbush Securities raised its price target on Tesla ( TSLA , Financials ) to $555, with a top estimate of $650, citing significant capabilities in self-driving and artificial intelligence.
The company said faster adoption of Tesla’s Full Self-Driving technology could be facilitated by regulatory changes made under the Trump administration.
Wedbush says the removal of federal barriers would enable Tesla to tap into what it sees as a $1 trillion market for artificial intelligence and autonomous vehicles. Supported by the development of autonomous technology and the recovery of demand from the Chinese market, the company estimates that the market value of Tesla will reach 2 trillion dollars by the end of 2025. Wedbush also said that the company’s Cybercab program should help raise its value in the future. year.
The research note also confirmed that Wedbush’s revised forecast excludes any potential developments from Tesla’s Optimus humanoid robot company, which it sees as a key driver of growth over time.
Said to be ready to introduce a brand new car as early as 2025, Tesla is targeting the budget-conscious market segment. The company has shown interest in adopting innovative manufacturing technologies to lower production costs, thus potentially positioning the vehicle as a game changer in EV capability. The news raised speculation about how it would affect Tesla’s competitiveness with other manufacturers and market share.
Along with this, Tesla started shipping the much awaited Cybertruck; The first models reach customers in December. Strong pre-order numbers from the Cybertruck’s unique appearance and cutting-edge technologies have attracted the attention of analysts in the truck market, often dominated by legacy companies.
This article first appeared on GuruFocus.