Tesla’s AI and Autonomous Tech Could Drive $2 Trillion Valuation

AUTIN, Texas, November 29, 2024 – Tesla ​Inc. (TSLA) is about ​to improve the valuation, ​analyst Wedbush Dan Ives projecting that ​the company could reach a market capitalization of $2 billion over the next 12 to 18 months. The prognosis, first reported by GuruFocus and other financial means, highlights Tesla’s advances ​in ​artificial intelligence (AI), autonomous driving technology and ​the early launch of Cybercab as a critical growth engine.

According ​to Ives, Tesla’s commitment to complement self-driving technologies (FSD), as well as the promotion of simplified federal regulation by CEO Elon Musk, places the company ​in a significant ​acceleration of its ​innovation cycle. Regulatory clarity, particularly in self-driving settings, could act as a catalyst for the ​growth of the car manufacturer. Ives also pointed out ​that creating ​an AI Tsar role within the U.S. government could stimulate broader AI initiatives, which could ​give Tesla ​an advantage in global competition. He believes Tesla’s ​IV ​and autonomous technologies alone are ​worth ​$1 billion.

The potential ​regulatory environment under Trump administration ​could further ease the ​obstacles that ​historically slowed Tesla’s progress. Ives noted that the Ministry of Transport should prioritize the formalization of a framework for self-driving vehicles, which could speed up Tesla’s expectations for 2026-2027. This change, he said, could ​allow the ​company to better compete with China’s progress ​in AI and ​autonomous automotive technologies.

In addition to the regulatory benefits, the potential loss of the federal tax credit of $7,500 EV could paradoxically strengthen ​Tesla’s competitive position. Ives pointed out that Tesla’s field in ​the electric vehicle (EV) market, even without ​subsidies, underlines its robust position. The ​size of the car manufacturer and market ​leadership should ensure their place in a ​non-subsidized environment, thereby strengthening their growth path.

The next launch of the ​Tesla Cybercab is considered another fundamental milestone in the company’s roadmap. In ​addition to AI and stand-alone capabilities, ​Cybercat illustrates Tesla’s ability to integrate state-of-the-art technologies with scalable product offerings. These developments prompted Wedbush to maintain an “Outperform” rating ​in Tesla, setting a target ​price ​of ​$400 per share. Investor interest, according to Ives, focuses on Tesla’s long-term growth strategy and its potential to ​lead the transportation revolution under the leadership of AI.

Ives described Tesla’s investment in AI as a “Golden Goose” for the company, paving the way for sustainable growth and a competitive advantage. He predicts that, in a favourable regulatory climate, Tesla’s ambitious projects will grow, eventually reshaping the global automotive ​and ​technology sectors. ​With AI and the increasingly critical autonomous dynamics ​in the electric vehicle market, Tesla’s approach to innovation continues to inspire investor optimism and increase its ​valuation potential.

The combination of technological leadership, ​regulatory ​opportunities and ​strong market position ​reinforces Ives’ confidence ​in Tesla’s ​trajectory. ​While challenges remain, alignment of the CEW, stand-alone systems and product innovation could enable Tesla ​to redefine the industry and achieve ​its $2 billion evaluation target in the near future.