Sunday 22 Dec
Two major investment firms have raised their price targets for Tesla shares, boosting the stock's value by 4% and bringing the company's valuation closer to the trillion-dollar mark.
Wedbush raised its price target for Tesla shares to $515, representing a 15% increase from last Friday's closing price.
The firm cited Tesla's
advancements in autonomous driving and artificial intelligence as key drivers,
highlighting the potential for significant investment opportunities, especially
with the possibility that the incoming administration of US President-elect
Donald Trump could be open to policy changes that would benefit Tesla.
Wedbush analysts estimated that
Tesla's potential in artificial intelligence and autonomous driving alone could
exceed a trillion dollars.
The firm also outlined a bullish
scenario where Tesla's share price might reach $650 by 2025, citing a potential
for a supportive regulatory climate and rising demand, especially from the
Chinese market.
They predicted that if Tesla
fully realizes its autonomous driving vision and achieves a two-trillion-dollar
market capitalization by the end of 2025, the stock could experience further
appreciation.
Conversely, Truist Securities
increased its price target for Tesla shares to $360, from a previous estimate
of $238, fueled by increased confidence in Tesla's cash flow generation
capabilities, including the potential launch of a "robotaxi" service.
The firm also considered the improved political landscape that could favor Tesla, given CEO Elon Musk's positive relationship with then-President-elect Trump.
