Veteran Wall Street Pro Just Dropped a Bold Tesla Price Target

Tesla (NASDAQ:TSLA) stock has been one of the most volatile stocks in the Magnificent Seven. With its beta of nearly 2.5, the name is bound to amplify any moves made in the S&P on any given day. And while some may think the EV (electric vehicle) titan will tread water as competition and a weaker consumer environment look to weigh in the second half, I do think that the case for buying TSLA shares at around $330 per share makes a whole lot more sense if you view the firm as more of an AI company than an automaker of EVs that has internals where “everything’s computer.” 

Indeed, the Cybercab (Tesla’s robotaxi offering) has considerable promise, but is it the big catalyst that could propel Tesla back to new highs and perhaps $500 and beyond?

With Ark Invest’s Cathie Wood buying more TSLA stock in July (she already owns a great deal across her ETFs), I think now could be a great time to top up a position as new catalysts (the robotaxi roll-out) come into play for the battered EV maker. It’s not just Wood who’s a bull on the name, though. A Wall Street veteran recently gave Tesla shares a huge vote of confidence, setting a $ 500-per-share price target.

This Wall Street bull sees Tesla headed to $500

Wedbush Securities analyst Dan Ives is one of the biggest tech bulls on Wall Street, and he’s got serious conviction in Tesla stock. With an outperform rating (which pretty much amounts to a “buy” recommendation), and a target that calls for more than 50% upside from Friday’s closing price on the back of the company’s robotaxi fleet roll-out, I do think it’s time to start viewing Tesla as the ultimate Mag Seven comeback play.

It has a big catalyst and AI talent that may very well catch everyone by surprise. While Ives’ year-ahead outlook is quite upbeat, it’s his longer-term projection that has me most intrigued. After all, I’ve been impressed with Ives’ track record over the years, especially if he’s stood out from the bullish crowd on certain names that were already coming in hot.

Ives thinks Tesla could sport a $2 trillion market cap in around 18 months. With Ives effectively calling for a doubling in the stock by 2026’s conclusion, I’d be inclined to watch the coming week’s earnings results very closely. If there’s a big miss and a quick drop, perhaps there could be an opportunity to snag shares at closer to $315.

Waymo is booming. But Tesla may not be all too far behind in the still-early robotaxi race

Tesla hit the ground running this month as it expanded its service, but time will tell if its offering can catch up to the likes of Waymo.

Alphabet (NASDAQ: GOOG) and its Waymo business are considered by many to be early leaders in the emerging robotaxi race. It has over 10 million rides and 100 million miles (and counting) under its belt and is moving full speed ahead with its expansion into major U.S. cities. In recent months, Waymo seems to have hit quite the inflection point. 

Still, it’s way too early to call a winner in a robotaxi race that may very well have more than one dominant player. Indeed, there’s the Lyft (NASDAQ:LYFT) to Uber (NASDAQ:UBER) in ride-hailing and the PepsiCo (NASDAQ:PEP) to Coca-Cola (NYSE:KO) in fizzy colas. A scenario that sees Tesla trail Waymo doesn’t mean it can’t also gain win big.

If you’re a fan of the vision of Cybercab, the potential behind the Optimus robot, and Musk’s take on AI, perhaps investors are getting a pretty sweet deal on the stock now that it’s down 29% from its all-time high. Of course, there’s a ton of execution risk as Musk and company deliver on their promises. But given the man’s track record, I’d argue it’s never a good idea to bet against him, especially when his stock’s marked down.