Wedbush Securities analyst Dan Ives has raised Tesla’s price target to $550, signaling growing confidence in the electric vehicle manufacturer’s demand and autonomous potential under President Donald Trump’s administration. This new target represents a significant increase and reflects Ives’ optimism about Tesla’s future.
What’s Behind the Price Target Increase
The price target increase comes amid complex market dynamics, including challenges in vehicle deliveries and potential policy changes. Despite these challenges, Tesla remains the dominant electric vehicle brand nationwide, with U.S. deliveries totaling 633,762 units in 2024. However, the company’s stock performance has lagged behind market expectations, with fiscal 2025 and 2026 earnings estimates declining 39% and 45% respectively over the past year.
Debates Around Tesla’s Future
Investor Gary Black has cautioned against inflated expectations for the Optimus robot program, estimating it could add only $0.70 to earnings per share by 2027. Bank of America analyst John Murphy valued the Optimus segment between $14 billion and $95 billion, representing just 2% of Tesla’s total estimated value. Ives, however, remains optimistic, setting a bull case target of $650, representing a 56% increase from the current trading price, without factoring in Optimus’ potential.
Potential Challenges Ahead
The potential elimination of the $7,500 federal electric vehicle tax credit under the Trump administration introduces additional uncertainty. While Elon Musk previously suggested minimal impact on Tesla, Black warned of significant pricing challenges. Despite these challenges, Ives believes that Tesla is entering a “golden era” under the Trump administration.
Current Market Performance
Tesla stock closed at $415.11 on Wednesday, down 2.11% for the day. In after-hours trading, the stock dipped further 0.32%. Over the past year, Tesla’s stock has gained 98.81%. The company has a consensus price target of $308.4, with a high of $550 and a low of $24.86. The average target from Wedbush, Piper Sandler, and Barclays is $458.33, implying a 10.77% upside.
Key Takeaways
- Dan Ives raises Tesla’s price target to $550
- Ives predicts a “golden era” for Elon Musk under the Trump administration
- Tesla’s stock performance has lagged behind market expectations
- The company faces potential challenges, including the elimination of the federal electric vehicle tax credit
- Ives sets a bull case target of $650, representing a 56% increase from the current trading price