Tesla's AI And Robotaxi Push Could Add $1 Trillion, Analyst Says

Tesla (NASDAQ: TSLA) and its CEO, Elon Musk, are entering a pivotal phase as artificial intelligence and robotaxis reshape the company’s growth story.

Analysts view Tesla as positioned to dominate the autonomous vehicle market, with the expansion of robotaxis and AI initiatives driving its next growth chapter.

Wedbush analyst Daniel Ives maintained an Outperform rating on Tesla with a price forecast of $500.

Also Read: Tesla Aims For Record Deliveries, AI And Self-Driving Edge Over Rivals: Analyst

Ives argued that Tesla and Musk have entered one of the most pivotal chapters in the company’s history as AI reshapes the auto industry and the long-awaited robotaxi market becomes a reality. The analyst said investors are beginning to look past Tesla’s near-term demand challenges and recognize the company’s strong position to dominate the autonomous vehicle space.

He expects Tesla’s robotaxi network to scale to 30 to 35 U.S. cities within the next year.

Ives termed Musk’s newly approved pay package as a key positive for shareholders, noting that it ensures Musk will remain Tesla’s CEO until at least 2030. The analyst emphasized that Musk remains Tesla’s most valuable asset and the board made the right decision to secure his leadership.

The package grants Musk an additional 423 million shares, increasing his ownership to approximately 25% of the voting power. Ives said this level of control is critical for Musk to continue driving Tesla’s strategy.

The analyst described this autonomous chapter as potentially transformative, estimating Tesla’s AI and self-driving initiatives could add $1 trillion to the company’s valuation in the coming years.

Despite skeptics’ pessimism over Musk’s robotaxi ambitions, Ives expressed conviction on Tesla’s mass-scale autonomous growth.

He predicted that under President Trump, federal regulators would fast-track autonomous approvals by reducing the role of individual states.

Ives said Musk’s complicated relationship with Trump will ultimately benefit Tesla, as both share the goal of keeping the U.S. ahead of China in AI and autonomy.

Looking ahead, Ives forecasts a bull-case scenario where Tesla’s market capitalization could reach $2 trillion by mid-2026. The analyst believes the $1 trillion of AI-driven valuation will begin unlocking over the next 12 to 18 months through broader adoption of Full Self-Driving, deeper integration of autonomous features across Tesla’s fleet, and the rollout of the Cybercab robotaxi service in the U.S. He described these initiatives as Tesla’s “golden goose” for long-term growth.

Ives projected third-quarter revenue of $24.75 billion and EPS of $0.51.

Price Action: TSLA stock was up 1.04% at $427.81 at the last check on Friday.

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