Analyst on Wall Street forecasts Tesla's shares reaching $400. Worthy of investment consideration?
Tesla (TSLA 2.25%) shares have been on a winning streak since the U.S. election on Nov. 5. CEO Elon Musk has forged a close rapport with President-elect Donald Trump, and investors feel that favorable public policy towards electric vehicles (EVs) could significantly benefit Tesla.
This optimism has led investors to continue buying Tesla shares. Following another significant increase at the start of this week's trading, Tesla stocks have surged by over 30% since Election Day. And one Wall Street analyst is predicting even more growth.
In a report released by Wedbush analyst Dan Ives, he stated that Tesla is on a trajectory that could bring substantial returns for investors. He recommends buying the stock and values it at $400, according to Barron's. This would represent a gain of almost 25% from the closing price last Friday.
Tesla's full-fledged autonomous vehicle plans
Ives observed that Musk's relationship with Trump is already setting the stage for potential policy changes related to EVs. Reports over the weekend indicated that Trump's transition team is already working to regulate self-driving vehicles on a federal level, instead of leaving it up to individual states.
This could create a smoother path for Tesla's autonomous vehicle aspirations. In his Sunday report, Ives wrote, "Tesla's goal of self-driving cars, including its Cybercabs, and the sale of this technology to existing Tesla owners, now has a clearer route with a strong Trump/Musk alliance driving the agenda and aligning well with our Tesla investment thesis."
The analyst pointed out that a federal approach could ease regulations related to self-driving vehicles. This would make rolling out Tesla's Cybercabs or offering the software to existing Tesla owners a smoother process across state lines, providing a significant boost for Musk's artificial intelligence (AI) vision for Tesla.
As for his business interests, Musk seems to be firmly in the driver's seat, so to speak, with the incoming administration. This could be good news for Tesla shareholders, and Ives' price target for Tesla stock reflects this optimism.
The potential regulatory changes towards self-driving vehicles under President-elect Trump's administration could significantly benefit Tesla's autonomous vehicle plans, as mentioned by Wall Street analyst Dan Ives. This federal approach could ease regulations, making it smoother for Tesla to roll out its Cybercabs or offer self-driving technology to existing Tesla owners across states, thereby boosting Musk's AI vision for Tesla. Furthermore, Ives' positive outlook on Tesla's future has led him to recommend investing in the company and predict a gain of nearly 25% at a price of $400 per share.
