Impacting a $2 trillion market value! Wall Street analysts significantly raise Tesla's target price
Tesla's stock price rose by 6.14%, closing at $463.02, as Wall Street analyst Dan Ives raised the target price from $400 to $515, predicting a market capitalization of $2 trillion. Ives believes that the Trump administration will promote the development of autonomous driving and artificial intelligence, and that Tesla's march towards a $2 trillion market capitalization has already begun in the next 12 to 18 months. Since November 5, Tesla's stock price has increased by a total of 73%
According to the Zhitong Finance APP, on Monday, Tesla (TSLA.US) stock price surged by 6.14%, closing at $463.02. This increase was driven by Wall Street analysts significantly raising Tesla's target price.
On Sunday, Wedbush analyst Dan Ives raised Tesla's target price from $400 to $515, making it the highest target price on Wall Street. He also provided a target price of $650 under an "optimistic scenario," which would bring Tesla's market capitalization to approximately $2.1 trillion, while the current new target price corresponds to a market capitalization of about $1.7 trillion.
In his report, Ives stated that the Trump administration would become a "game changer for Tesla and Musk in the fields of autonomous driving and artificial intelligence in the coming years."
Tesla uses AI-based computing technology to train its cars for autonomous driving, and its highest level of driving assistance software—Full Self-Driving (FSD) feature—is still being continuously improved. This software can currently complete driving tasks most of the time but still requires human supervision. Meanwhile, Waymo, the autonomous driving company under Google's parent company Alphabet (GOOGL.US, GOOG.US), completes over 150,000 driverless taxi services weekly and plans to expand Waymo services to more cities by 2025.
As technology matures, Ives and many Wall Street analysts expect that Trump’s policies will make it easier to provide autonomous driving services. In his Sunday report, he wrote, "We believe that Tesla's pace towards a $2 trillion market capitalization has already begun in the next 12 to 18 months."
Ives has been a long-term bull on Tesla, rating the stock as "buy." However, the significance of this target price increase lies in addressing an unusual phenomenon—the recent surge in Tesla's stock price has surpassed the highest target price set by mainstream Wall Street brokerages.
Before trading on Monday, Tesla's stock price had risen by 73% since the U.S. elections on November 5, with a year-to-date increase of 76%. This rapid surge has even pushed its stock price above the previous highest target price of $420 set by Daiwa analyst Jairam Nathan.
This phenomenon of stock prices exceeding Wall Street's highest target price is very rare. Historical data shows that the last time Tesla's stock price exceeded $400 was at the end of 2021, when only a few analysts had target prices above $467.
Now, investors finally have a target price far above last Friday's closing price of $436.23, which may bring them some confidence. However, whether this epic rise in Tesla's stock price can continue in the future still needs time to test.
As of the end of trading on Monday, Tesla's stock price has risen approximately 86% this year, just 11% away from Ives' new target price of $515