Today saw another surge in Tesla's stock price.
Today saw another surge in Tesla's stock price.
Tesla (TSLA 8.22%) has experienced a consecutive upward trend since the U.S. election, resulting in an over 80% increase and reaching new record highs. The shares escalated another 5.6% by 3:25 p.m. ET today. One market analyst, Dan Ives from Wedbush, believes there are valid reasons behind this parabolic rise.
Ives recently released a report, elevating his stock price prediction by $115 per share. His new target is now $515, the highest among all other Tesla price objectives on Wall Street. He attributes this recent surge to the election of Donald Trump.
Dive into autonomous advancements
Elon Musk, Tesla's CEO, supported Trump financially and publicly before the election. He now serves as one of Trump's advisors within the incoming administration. Ives asserts that Musk's new role marks a significant shift in the autonomous and artificial intelligence (AI) narrative for both Tesla and Musk in the upcoming years.
Many Tesla enthusiasts, including Musk himself, believe that the company's valuation should primarily focus on the potential income generated by future self-driving technology, rather than its present vehicle sales. Ives sees a new Trump administration as an opportunity for this technology to become increasingly mainstream quickly.
Ives still doesn't believe that $515 per share marks the peak for Tesla stock. He believes that the company's self-driving technology, referred to as full self-driving (FSD), has the potential to skyrocket Tesla's valuation to over $2 trillion within the next 12 to 18 months. This would equate to a staggering stock price of roughly $625 per share by mid-2026, implying another 35% increase from the current rates.
Musk previously cautioned that investors should not own Tesla stock if they're skeptical about solving autonomous driving challenges. The company has recently released updates that still necessitate human driver supervision.
Given the robust progress in self-driving technology, coupled with Trump's administration, investor excitement around this potential growth has surged, with many buying into Ives' latest analysis.
Tesla's potential in autonomous driving technology, led by Elon Musk's role in the Trump administration, has fueled investor interest in the company. This belief in the future value of full self-driving (FSD) has led many to consider investing in Tesla's stock, as they see it having the potential to significantly increase the company's valuation and reach over $2 trillion within the next 18 months, potentially reaching a stock price of $625 per share.
In this context of investing in Tesla's future, the company's rising stock price is heavily influenced by the perceived potential income from self-driving technology, rather than its current vehicle sales.