Tesla Could Hit A $2 Trillion Market Cap By 2026 — And Even $3 Trillion In A Bull Case As Its 'AI Chapter' Finally Takes Hold, Says Top Analyst
Dan Ives of Wedbush Securities predicts Tesla could reach a $2 trillion market cap by 2026, with a bullish scenario of $3 trillion, driven by advancements in AI and robotics. Despite valuation concerns, Tesla is progressing in autonomous driving, with CEO Elon Musk aiming for driverless Robotaxi services. Tesla's stock rose 21.01% year-to-date, closing at $458.96.
Dan Ives, the managing director of equity research at Wedbush Securities, made a bold prediction for Tesla Inc. (NASDAQ:TSLA) on Monday.
Ives’ Bullish Predictions For Tesla
Ives shared his forecast in a post on X, highlighting the significance of the autonomous and robotics chapter for Tesla’s future.
He foresees a “monster year” ahead for the company, with a potential $2 trillion market cap by the end of 2026.
Ives also suggested a bullish scenario of a $3 trillion market cap by the end of 2026, attributing the potential growth as the “AI chapter takes hold” at Tesla.
Heading into 2026 this marks a monster year ahead for Tesla/Musk as the autonomous and robotics chapter begins. We believe Tesla hits a $2 trillion market cap in 2026 and in a bull case scenario $3 trillion by end of 2026…as the AI chapter takes hold at TSLA🍿🔥🏆🐂 @elonmusk
— Dan Ives (@DivesTech) December 15, 2025
Tesla Pushes Ahead On Driverless Tech, Robotics
This prediction by Ives comes at a time when Tesla is making significant strides in the autonomous driving space. Just last week, a driverless Tesla Model Y was spotted in Austin, Texas, hinting at the company’s progress in this area. In response to the post, CEO Elon Musk reiterated Tesla's aim to launch driverless Robotaxi services, stating, "Testing is underway with no occupants in the car."
Notably, Musk’s previous statement echoes Ives’ prediction. The CEO had said scaling Full Self-Driving (FSD) and the Optimus robot are key to Tesla's Master Plan IV, predicting that Optimus could account for about 80% of the company's value.
Valuation Concerns Persist
Earlier in December, despite Tesla’s dominance in the electric vehicle sector, a Morgan Stanley analyst downgraded the stock due to its stretched valuation. The analyst acknowledges Tesla's diversified business but argues that current valuation metrics no longer support a buy rating, and expects Tesla shares to face headwinds in EV sales through 2026.
This move was in line with the views of valuation guru Aswath Damodaran, who had previously criticized the irrational valuations of top tech giants, including Tesla.
Benzinga’s Edge Rankings place Tesla in the 67th percentile for quality and the 53rd percentile for growth, reflecting its average performance in both areas. Check the detailed report here.
Price Target: On a year-to-date basis, Tesla stock climbed 21.01% as per data from Benzinga Pro. On Friday, it rose 2.71% to close at $458.96.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
