The major bull on Tesla expects its stock to rise 42%. That's the best valuation on Wall Street

Wedbush analyst Dan Ives, known for his optimistic outlook on Tesla stock, raised his target price and now expects a 42% increase. His estimate has become the highest on Wall Street. Ives believes that Tesla is entering a new stage of development through investments in autonomous technologies and robotics. In a "bullish" scenario, the company's capitalization could reach $2 trillion as early as early 2026, and by the end of the year - and $3 trillion, the analyst predicts.

Wedbush analyst Dan Ives raised his target price on Tesla shares by 20% - from $500 to $600, Barron's reports. The new target is the highest on Wall Street. It assumes growth of quotations by almost 42% relative to the closing price on September 25. Ives also confirmed the recommendation to buy securities of Elon Musk's company.

"Tesla is approaching its AI revolution in big steps, betting on autonomous technology and robotics. In an optimistic scenario, Tesla's capitalization could reach $2 trillion as early as early 2026 and $3 trillion by the end of 2026, while the company rolls out large-scale production as part of its roadmaps for robotics and autonomous vehicles," Ives wrote.

He expects "aggressive expansion of the robotaxi service in more than 30 U.S. cities over the next year," notes Investor's Business Daily. The Wedbush analyst estimates that Tesla could capture about 70% of the global autonomous car market in the next ten years, and that the autopilot (FSD) feature will be used by more than half of the company's car owners, changing its financial model and profitability.

Tesla shares jumped 2.6% in early trading on September 26 before losing some of their gains. Usually the increase in target prices supports quotations, but the value of Tesla has already increased significantly - over the past three months it has added 30%, reminds Barron's. As a result, after a difficult first half of the year, the company's securities managed to return to the "green" zone in mid-September, and now they are in the plus by about 7% relative to the beginning of 2025.

The recent increase is due to expectations of strong data on the company's global electric car shipments for the third quarter after a long period of setbacks, Investor's Business Daily writes. That data will be released next month.

At the same time with Wedbush, Deutsche Bank also sharply raised its target on Tesla shares from $345 to $435, CNBC wrote. The new target price, however, is much more cautious and implies a rise of about 2.7%. Deutsche Bank analyst Edison Yu also praised the company's focus on areas such as robotaxis and Optimus robots, and noted that the bet on them, coupled with the decision on Elon Musk's remuneration, removed significant risks for the stock. All of this, Yu estimated, will allow Tesla to further capitalize on its leadership in embodied AI (embodied AI, that is, AI that controls physical objects).

Deutsche Bank is also optimistic about the company's car business and expects third-quarter deliveries to come in above forecasts, thanks to the launch of the Model Y L in China, as well as increased demand for electric cars in the U.S. amid the planned removal of subsidies for buyers.

In September, according to FactSet, Tesla shares received ten target price increases amid high investor optimism. And yet, the consensus target remains 20% below current quotes. Of the 51 analysts covering the company's securities, 24 recommend buying them, 16 recommend holding and 11 recommend selling.

This article was AI-translated and verified by a human editor