Tesla just got one of the most bullish outlooks on Wall Street, yet again.
On Friday, Wedbush analyst Dan Ives raised his price target for Tesla from $350 to $500, calling the company “the most undervalued AI play in the market today.” This is now a shift from the recent outlook from Ives.
Ives believes Tesla’s future isn’t just about electric cars, but about its software and AI potential — especially in autonomous driving. A big part of this bullish call hinges on Tesla’s long-awaited robotaxi service, which CEO Elon Musk says will launch in Austin by the end of June. Ives called this the “key next chapter of growth” and said it could be a major step toward a $2 trillion market cap by 2026.
“We have never viewed Tesla simply as a car company,” Ives wrote in his note to investors. “Instead we have always viewed Musk and Tesla as a leading disruptive technology global player.”
He believes Tesla is set to benefit from the growing influence of AI, putting it in the same conversation as companies like Nvidia, Microsoft, Amazon, and Meta. Central to this vision is Tesla’s Full Self-Driving (FSD) software, which is expanding in rollout. Ives predicts adoption rates could eventually top 50%, driving major gains in revenue and profit margins.
But there are challenges ahead. Tesla’s FSD still requires a human behind the wheel and has faced regulatory and safety concerns. Musk has repeatedly missed timelines for fully autonomous driving. Meanwhile, other players like Alphabet’s Waymo, Uber, and China’s Baidu are also making big moves in the robotaxi space.
Still, Ives believes Tesla’s global scale gives it a strong edge. “We believe Tesla has the opportunity to own the autonomous market,” he wrote, suggesting it could eventually license its tech to other automakers.
Wedbush is sticking with its “Outperform” rating on the stock, while warning that the path forward won’t be smooth. “Rome was not built in a day,” Ives noted, “and neither will Tesla’s autonomous and robotics strategic vision.”
Shares of Tesla have turned green on Friday amidst a market in red today, up 0.55% trading at $342.91 before the Memorial Day weekend.
