“AI and autonomous driving are worth at least $1 trillion”! “Die-hard bull” Dan Ives significantly raises Tesla's target price to $515

Tesla's stock price has continued to rise recently, reaching an all-time high based on optimism about Tesla's "autonomous driving opportunities" and the Trump administration.

Overnight, Tesla's stock price surged more than 6% on Monday, closing above $463, with a cumulative increase of 18% over the past five trading days.

Since Election Day, Tesla's stock price has soared 75%, and Wall Street analysts have been reassessing the stock. Analysts from Deutsche Bank, Bank of America, and Morgan Stanley have all raised their target prices for Tesla, while the latest "die-hard bull" Dan Ives from Wedbush Securities has significantly increased Tesla's target price.

In the latest research report, analyst Dan Ives raised Tesla's target price by 29% from $400 to $515. He stated:

We estimate that the artificial intelligence and autonomous driving opportunities are worth at least $1 trillion to Tesla, and we fully believe that under the leadership of the Trump administration, these key initiatives will accelerate.

However, if Trump's momentum is stronger or develops faster than the baseline scenario, Ives believes that in a "bull market" scenario, Tesla's stock price could soar to $650 by 2025, a 49% increase from last Friday's closing price, which would imply a market capitalization of $2 trillion, up from the current approximately $1.5 trillion.

Ives stated:

As Tesla's "autonomous driving vision" begins to take shape and demand in the Chinese market remains strong, the company will achieve rapid growth. The Cybercab autonomous taxi business is Tesla's "cash cow," which is currently planned to launch in early 2026.

Previously, there have been some signs that Trump will promote the development of full self-driving (FSD).

According to Bloomberg, Trump's transition team has informed advisors that they plan to make the "federal framework" for FSD or autonomous vehicles one of the priorities for the Department of Transportation.

Reuters previously reported that Trump's team suggested the new government cancel the National Highway Traffic Safety Administration (NHTSA) requirement for automakers to report accidents involving autonomous driving systems, a move that is clearly beneficial to Tesla.

Relaxing the rules for introducing autonomous vehicles, especially those without pedals or steering wheels, would greatly facilitate Tesla's development. Musk has repeatedly stated that the company's future depends on FSD and autonomous driving technology