Wedbush lifts Tesla target: March to an AI-driven valuation has now begun

Investing.com -- Wedbush raised its price target for Tesla to $600 from $500 per share in a note on Friday, citing what it called an “accelerated AI path” that investors are underestimating.

Wedbush maintains an Outperform rating on the stock, arguing that Tesla is “taking major steps in advancing its AI Revolution path with autonomous and robotics front and center heading into 2026 that will be a game changer and define Tesla’s future.”

The firm highlighted Chief Executive Elon Musk’s push as a “wartime CEO,” forecasting that Robotaxis will be “rolled out aggressively to over 30 U.S. cities within the next year.”

Analysts estimated the AI and autonomous opportunity is “worth at least $1 trillion alone for Tesla.”

Wedbush expects federal policy shifts to accelerate the rollout, noting: “We fully expect under a Trump White House over the coming year these key initiatives will now get fast tracked as the federal regulatory spiderweb that Musk&Co. have encountered over the past few years around FSD/autonomous clears significantly under Trump.”

On valuation, Wedbush said Tesla could reach a $2 trillion market cap in early 2026 in a bull case scenario and as much as $3 trillion by year-end as autonomous and robotics scale.

“The AI valuation will start to get unlocked in the Tesla story and we believe the march to an AI-driven valuation for TSLA over the next 6-9 months has now begun,” the analysts wrote.

Wedbush also sees near-term delivery strength, citing stabilizing global demand and improvement in China that could help Tesla exceed third-quarter expectations.

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