Tesla shares have been on the rise lately, and Wall Street is taking notice. Wedbush Securities analyst Dan Ives has raised his price target for Tesla to $600, up from his previous $500 target set in May. At the time, Ives said he believed Tesla could hit a $2 trillion valuation by 2026. Now, he sees even more upside, forecasting a potential $3 trillion market cap for the electric vehicle maker by late 2026.
At the time of writing, Tesla stock is trading at around $437, giving the company a market valuation of $1.37 trillion.
In a note to investors, Ives wrote on X: “We are raising price target on Tesla to $600 reflecting our view that an accelerated AI autonomous path is now on the horizon in 2026 and investors are underestimating the major transformation underway. We believe this will be the biggest growth chapter in Tesla’s history.”
The Wedbush analyst highlighted what he sees as Tesla’s “AI Revolution path,” with autonomous driving and robotics front and center. He expects the Robotaxi service to be rolled out in more than 30 U.S. cities over the next year, and called the autonomy and robotics opportunity alone worth at least $1 trillion for Tesla.
Ives also suggested that under a Trump White House, Tesla could benefit from eased federal regulatory hurdles for self-driving, which would give the company a significant boost as it accelerates its Cybercab rollout and broader AI strategy.
Other firms are also turning more bullish on Tesla. Deutsche Bank has raised its price target to $435 (up from $345), citing Elon Musk’s renewed focus on robotaxis and the Optimus humanoid robot. The firm said Musk’s recent $1 trillion compensation package proposal, which shareholders will vote on in November, helps remove a major overhang on the stock.
Piper Sandler analyst Alex Potter also recently upped his Tesla price target to $500 from $400, following a trip to China that showcased Tesla’s competitive edge in real-world AI and vehicle autonomy over higher-volume Chinese rivals.
Tesla’s stock momentum was further fueled when Musk purchased $1 billion worth of shares on the open market a couple of weeks ago — his first such buy since 2020 — signaling confidence in Tesla’s future.
