Tesla (TSLA, Financials) may reach a $2 trillion valuation within the next 12 to 18 months, according to a report by Wedbush analyst Dan Ives.
Key growth drivers are expected as the automaker's developments in artificial intelligence, autonomous driving, and the upcoming Cybercab.
Ives lists as important elements Tesla's commitment to full self-driving technologies and CEO Elon Musk's impact in creating federal regulations. Possible cooperation with the Trump government might hasten projects for driverless cars, therefore relieving rules and helping Musk's aspirations in the artificial intelligence field.
Ives said that the Transportation Department should give formalizing a framework for self-driving cars first attention. He also mentioned how the creation of an AI Czar position would motivate more broad AI initiatives; his estimate of Tesla's AI and autonomous technology worth alone stands at $1 trillion.
“We fully expect under a Trump White House, those initiatives will now get fast tracked as the federal regulatory spiderweb that Musk & Co have encountered over the past few years clears significantly,” Ives said.
Regulatory obstacles slowing down Tesla's advancement may be lessened under a possible Trump presidency, therefore offering a cleaner road for growth. Ives thinks this climate might fast-track Tesla's ambitions for 2026–2027, therefore enabling the business to compete with China's AI and autonomous car developments.
The possible loss of the $7,500 federal EV tax credit adds even more to Tesla's competitive advantage in the electric car industry. Ives said Tesla's size and market domination would confirm its place in a non-subsidy market.
With a $400 price target, Wedbush has an Outperform rating on Tesla, highlighting investor attention on the company's long-term development plan and AI destiny.
