Tesla's 'Wartime CEO' Elon Musk Could Help EV Maker Unlock $1 Trillion In AI Valuation Over Next Few Years: Wedbush - Retail Shares The Optimism

Tesla could be looking at a $1 trillion boost from artificial intelligence and self-driving technology, Wedbush analysts said, predicting the company's robotaxi network will reach 30 to 35 U.S. cities within the next year. 

The stock ended Friday at $395.94, not far from its 52-week high of $488.54.

Daniel Ives and his team at Wedbush kept their 'Outperform' rating on the stock and set a 12-month target of $500, which points to about 26% upside. They believe Tesla's market value could climb to $2 trillion by mid-2026 as it pushes deeper into autonomous driving and AI. 

“Musk is driving this vision and is now in a wartime CEO mode which is music to the ears of Tesla bulls with this AI Arms Race happening across the tech world,” the analysts wrote.

The report said Elon Musk's new incentive-driven pay package, which grants an additional 423 million shares, was a relief for investors by securing his role as chief executive until at least 2030. The award could raise Musk's ownership to about 25% voting power. Wedbush described Musk as Tesla's most important asset and said the board made the smart and right move to keep him at the helm.

The analysts added that the political backdrop could support faster progress, forecasting that a second Trump White House would likely accelerate Tesla's efforts as federal regulators take more control of autonomous driving rules, reducing the patchwork of state-level authority. They noted that Trump wants the U.S. to stay ahead of China in the AI race and sees autonomous vehicles as a key factor, with Tesla playing a central role.

Wedbush pointed to the launch of Tesla's planned Cybercab service and broader adoption of its Full Self-Driving software as the real“golden goose” for Elon Musk and his team. The firm expects revenue to decline to approximately $92.3 billion in 2025, from $97.7 billion in 2024, but anticipates a rebound to $108.1 billion in 2026. Earnings per share are forecast to ease to $1.68 next year before climbing back to $2.80.

The analysts, however, flagged several risks, including the chance Tesla may need to raise fresh capital to boost liquidity, the possibility of production snags at its Fremont and Shanghai factories, and regulatory or operational setbacks in China, which they stressed remains critical to the company's long-term growth.

On Stocktwits, retail sentiment for Tesla was 'extremely bullish' amid 'high' message volume, with the stock topping the platform's trending equities list.

Tesla's stock has declined 2% so far in 2025.

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