Ives在报告中表示，特朗普政府将成为“未来几年自动驾驶和人工智能领域对特斯拉和马斯克的游戏规则改变者”。Tesla's stock price surged by 6.14%, closing at $463.02.
According to Zhito Finance APP, on Monday, Tesla's (TSLA.US) stock price increased significantly by 6.14%, closing at $463.02. This rise was driven by Wall Street Analysts significantly raising Tesla's Target Price.
On Sunday, Wedbush Analyst Dan Ives raised Tesla's Target Price from $400 to $515, becoming Wall Street's highest Target Price. He also provided a Target Price of $650 under an "optimistic scenario," which would bring Tesla's Market Cap to approximately $2.1 trillion, while the current new Target Price corresponds to a Market Cap of about $1.7 trillion.
Ives stated in a report that the Trump administration will become a game changer for Tesla and Musk in the field of Self-Driving Cars and AI in the coming years.
Tesla uses AI-based computing technology to train Autos for Self-Driving Cars, and its most advanced driving assistance Software - Full Self-Driving (FSD) feature is still being improved. This Software is currently capable of completing driving tasks most of the time but still requires human supervision. Meanwhile, Waymo, the self-driving company under Google's parent company Alphabet (GOOGL.US, GOOG.US), completes over 0.15 million automated taxi services weekly and plans to expand Waymo services to more cities by 2025.
With the maturity of technology, Ives and many Wall Street Analysts expect that Trump’s policies will make it easier to provide Self-Driving Cars services. He stated in his Sunday report, "We believe Tesla's pace towards a $2 trillion Market Cap has already begun in the next 12 to 18 months."
Ives has been a long-term bull on Tesla, rating the stock as "Buy." However, the significance of this Target Price increase lies in addressing an unusual phenomenon – recently, Tesla's stock price increase has surpassed the highest Target Price of mainstream Brokerages on Wall Street.
Before Monday's Trade, Tesla's stock price had risen by 73% since the USA election on November 5, with an increase of 76% this year. This wave of growth has been so rapid that its stock price even exceeded the previous highest Target Price of $420 set by Daiwa Analyst Jairam Nathan.
It is very rare for stock prices to exceed Wall Street's highest Target Price. Historical Data shows that the last time Tesla's stock price surpassed $400 was at the end of 2021, when only a few Analysts had a Target Price higher than $467.
Now, investors finally have a Target Price far above last Friday's closing price of $436.23, which may bring them some confidence. However, whether this epic rise in Tesla's stock price can be sustained in the future still requires time to test.
As of the end of Monday's Trade, Tesla's stock price has risen about 86% this year, just 11% short of Ives' new Target Price of $515.