Tesla Stock Surges To New High As Analysts Bet On $1 Trillion Autonomous Opportunity

Tesla’s stock (TSLA) soared over 6% on Monday, closing above $463 per share and extending its blistering end-of-year rally. Shares are up 18% in the last five days and have climbed an impressive 75% since Election Day, fueled by optimism surrounding Tesla’s autonomous driving potential and perceived regulatory tailwinds under President-elect Donald Trump.

Price Target Raised to $515

The latest boost came from Wedbush Securities’ Dan Ives, a long-time Tesla bull, who raised his price target from $400 to $515. Ives cited Tesla’s massive upside in the AI and autonomous vehicle market, which he values at over $1 trillion:

“We estimate the AI and autonomous opportunity is worth at least $1 trillion alone for Tesla, and we fully expect under a Trump White House these key initiatives will now get fast-tracked,” Ives wrote in a note to clients on December 16.

Deustsche Bank’s Edison Yu, Bank of America’s John Murphy and Morgan Stanley’s Adam Jonas all raised their forecasts earlier this month. The analysts highlight Tesla’s leadership in the autonomous driving space and its potential to dominate a market that could reshape the transportation sector.

Regulatory Optimism Under Trump

Reports indicate Tesla could benefit significantly under Trump’s incoming administration:

1. NHTSA Rule Changes:
   According to Reuters, Trump’s team has proposed eliminating a National Highway Traffic Safety Administration (NHTSA) mandate requiring automakers to report crashes involving self-driving systems. Tesla has filed reports on over 1,500 crashes related to its Autopilot and Full Self-Driving (FSD) systems. The removal of this requirement would be a positive regulatory shift for Tesla.
2. Federal Framework for Self-Driving Vehicles:
   Bloomberg News reported that Trump’s transition team is prioritizing a federal framework for autonomous vehicle development, including those without pedals or steering wheels. Such easing of regulatory hurdles would be a game-changer for Tesla, as CEO Elon Musk has repeatedly emphasized that FSD technology is the cornerstone of Tesla’s future growth.

Tesla’s Autonomous Future

Tesla’s stock boom reflects growing investor confidence in its AI-driven technologies and regulatory shifts that could fast-track the rollout of self-driving vehicles. With analysts projecting the autonomous market to unlock trillions of dollars in value, Tesla appears well-positioned to capitalize on this transformation.

As Musk puts it, the future of Tesla hinges on its FSD capabilities — and with political winds potentially shifting in its favor, the road ahead looks promising.