‘Next Destination: $2 Trillion,’ Says Daniel Ives About Tesla Stock

The one thing Tesla (NASDAQ:TSLA) investors hoped for has finally happened. Nope, we’re not talking about a Cybertruck actually being sold – rather, that CEO Elon Musk has decided he’s attended enough dinner parties at Mar-a-Lago and it’s time to head back to more familiar pastures.

After his brand-destroying exploits as the chainsaw-wielding arm of the Trump administration, Musk has brought his political activities to a close (for now). Musk officially stepped down from his position in the Trump administration last Wednesday night, bringing to an end a controversial and widely criticized tenure as a senior adviser to the president and the unofficial leader of DOGE (Department of Government Efficiency).

That, says Wedbush analyst Daniel Ives, is “music to the ears of Tesla shareholders.”

“While Trump mentioned that Musk will stay on as an advisor, we believe that Musk’s days in politics are essentially over after this experiment that clearly morphed into brand damage for Tesla and took on a life of its own,” the 5-star analyst said. “With the rollout of robotaxi launch coming up on June 12th following the recent announcement that TSLA has been testing driverless Model Ys for several days already, it was the best possible news Tesla investors could have heard with TSLA’s most important asset now fully focused on the autonomous/robotics path.”

Musk’s involvement with the White House was responsible for a “20% overhang on the stock,” yet that has now been lifted. Ives thinks this “dark chapter” can now be put to rest, and from hereon in, Musk is all set to lead “this autonomous and robotics future.”

In fact, Ives believes Tesla is still “the most undervalued AI play” out there. It’s true, he says, Tesla’s autonomous and robotics strategic vision, just like Rome, will not be built in a day. Setbacks are inevitable, but Tesla’s unparalleled global scale and reach position it to lead the autonomous vehicle market – and potentially license its technology to other automakers both in the U.S. and internationally in the future. And that should set Tesla stock on a path to reach a $2 trillion valuation over the next 12 to 18 months.

“We see the true autonomous winner as Tesla and over the coming year more investors will recognize this AI vision with Musk back in the driver’s seat,” Ives summed up optimistically.

All told, Ives assigns an Outperform (i.e., Buy) rating to TSLA shares, along with a Street-high $500 price target. The implication for investors? A potential upside of 44% from current levels. (To watch Ives’ track record, click here)

That exuberant take contrasts with most current TSLA theses. The stock only claims a Hold (i.e., Neutral) consensus rating, based on a mix of 16 Buys, 10 Holds and 11 Sells. Meanwhile, the $282.7 average price target implies shares will shed 17.5% over the coming months. (See TSLA stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.