Wedbush Lifts Tesla (TSLA) Price Target to $500, Cites AI and Autonomous Future

On Friday, Wedbush increased its price target on Tesla Inc. (NASDAQ:TSLA) to $500 from $350, while maintaining an Outperform rating on the shares.

The firm believes that a dark chapter for Elon Musk and Tesla, which had earlier caused brand damage and a black cloud over the story, is now in the past.

Wedbush analyst Daniel Ives highlighted Musk's renewed commitment to Tesla as CEO and expressed optimism about his leadership of the company's autonomous and robotics future, with his involvement in the White House now essentially over. Ives believes this dedication positions Tesla to become one of the premier pure plays in AI over the next decade, with the majority of valuation upside tied to the success of its autonomous vision.

While acknowledging the need to revive Model Y growth in China and Europe, Ives emphasized that the core focus for investors is the AI revolution that is now coming to Tesla Inc. (NASDAQ:TSLA). This likely refers to Tesla's AI-driven FSD technology and humanoid robot initiatives. The firm is particularly encouraged by the upcoming June launch of Tesla's autonomous robotaxi in Austin, which is seen as the beginning of a new era of growth for the company. This aligns with the sentiment of many Tesla bulls who are placing high valuations on the company's robotaxi and robotics future.

While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.