Tesla Inc. is positioned for significant growth as the incoming Trump administration indicates plans to accelerate regulatory support for artificial intelligence (AI) and autonomous vehicles, according to Wedbush analysts. They assert that Tesla remains the most undervalued AI opportunity in the current market.
Wedbush highlighted the potential for a more favorable regulatory environment for Tesla’s AI-driven initiatives, such as its Full Self-Driving (FSD) technology and autonomous Cybercab projects. Analysts believe the Trump administration may prioritize establishing a federal framework for autonomous vehicles, addressing long-standing regulatory obstacles. This shift could unlock up to $1 trillion in AI value for Tesla, setting it on a path toward a $2 trillion valuation within 18 months.
The analysts reiterated their Outperform rating for Tesla, maintaining a 12-month price target of $400.
“Elon Musk’s significant influence in the Trump White House is already paving the way for Tesla’s progress. The prospects for Cybercabs and autonomous technologies are now within reach, supported by a strategic alignment between Musk and the Trump administration,” Wedbush analysts noted.
The research also speculates on the potential creation of an “AI Czar” role in the government, which could drive broader advancements in the tech industry. For Tesla, such initiatives could expedite its timelines for achieving AI and autonomous vehicle milestones, helping it compete with China’s rapid progress in autonomous technology.
While the anticipated removal of EV tax credits under Trump’s policies may challenge the broader electric vehicle industry, Wedbush sees Tesla as uniquely resilient. Thanks to its scale and market dominance, Tesla is less reliant on subsidies compared to competitors.
Wedbush emphasized Tesla’s strategic shift toward AI and autonomy, positioning the company as a disruptive technology leader rather than just an automaker. Investors are closely monitoring these regulatory developments, which could profoundly impact Tesla’s growth trajectory and leadership in the autonomous sector.
“With the autonomous and AI era on the horizon, Tesla’s broader strategic vision is coming into focus. We firmly believe Tesla remains the most undervalued AI opportunity in the market today,” the analysts concluded.
