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Investing in Tesla: Why AI and Autonomous Vehicles Could Boost Gains
According to Wedbush analysts, Tesla Inc. (NASDAQ: TSLA) is poised for significant gains as the Trump administration signals an acceleration of regulatory support for artificial intelligence and autonomous vehicles. The analysts believe the company remains the most undervalued AI play in the market.
The analysts note that a friendlier regulatory environment, particularly for Tesla’s Full Self-Driving (FSD) technology and autonomous Cybercab initiatives, could be established by the Trump administration. This could lead to a federal framework for autonomous vehicles, clearing long-standing regulatory hurdles for Tesla.
Wedbush analysts predict that these changes could unlock up to $1 trillion in AI value for Tesla, bolstering its trajectory toward a $2 trillion valuation within 18 months. The analysts maintain an Outperform rating on Tesla, with a 12-month price target of $400.
The analysts also suggest the potential creation of an “AI Czar” role within the government, which could catalyze broader AI advancements in the tech industry. This, in turn, could expedite Tesla’s timeline for achieving its AI and autonomous vehicle goals, aligning with competitive pressures from China’s advancements in autonomous technology.
While the removal of EV tax credits under Trump’s policies poses a challenge for the broader industry, Wedbush views Tesla as uniquely positioned to navigate this environment due to its scale and dominance in the electric vehicle market.
The analysts believe Tesla’s strategic pivot toward AI and autonomy reinforces its position as a leading disruptive technology company, not just an automaker. With regulatory developments closely watched by investors, the implications for Tesla’s growth and market leadership in the autonomous space will be far-reaching. As the company embarks on its autonomous and AI era, it is clear that it remains the most undervalued AI play in the market today.
