Tesla (NASDAQ:TSLA) stock has been one of the hottest stocks since Donald Trump won the presidential election earlier this month. Now up nearly 38% since election day, TSLA shares are starting to get closer to the heights not seen since the start of 2022. Although only time will tell if the electric vehicle titan will hang onto the recent gains, I do think that Elon Musk’s role in the Trump administration comes with more than its fair share of perks.
Though there are some who view the post-election melt-up in the stock as unsustainable and setting the stage for a sharp and painful correction at some point down the road, there are others who still see way more upside to be had in the stock. Indeed, there’s still no shortage of bulls on Wall Street out there, many of which stood by the name during its turbulent past couple of years.
Key Points About This Article
- Tesla stock has been red-hot after the election, and for good reason.
- As Cybercab hits the gas, the stock may just be on its way to a $2 trillion market cap, as Wedbush’s Dan Ives alluded to in a recent sitdown with CNBC.
- If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Tesla’s artificial intelligence (AI) and robotaxi opportunities were something that seemed a tad far-fetched just a few months ago. However, now, they seem more than real in the months following Tesla’s first robotaxi unveiling. Combined with a potentially tech-friendly Donald Trump in the White House, I’d argue that the robotaxi tailwind may be a heck of a lot closer than some robotaxi skeptics think. Indeed, should autonomous vehicles face fewer regulatory hurdles under the Trump administration, I’d argue there’s a good chance that the Tesla Robocab could really start to pull ahead in the race.
More recently, Wedbush Securities’ Dan Ives called Tesla one of the most undervalued AI stocks in the stock market. He set a high price target bar for the company, noting that it could boast a market cap of $2 trillion. Today, the EV firm’s valuation is just north of $1 trillion, making such a range entail almost a doubling of the share price.
Indeed, such a doubling from current levels (shares currently trade at $345 and change per share) may also be accompanied by a stock split at some point down the road. If I were to guess, it would probably be a six-for-one split if Ives’ target were to be hit.
Could the stage be set for TSLA stock to accelerate to a $2 trillion market cap?
Bullish analyst Dan Ives pointed out that the regulatory environment could fast-track the company’s full self-driving (FSD) efforts. And, perhaps shortly after, a rollout of the Tesla Cybercab. Just how quickly a rollout of such a robotaxi service happens, though, remains a question many investors are pondering right now. Either way, doubters of Tesla’s robotaxi ambitions could be in for a huge surprise if Musk is able to finally get its most ambitious innovation to date on the roads.
I have no idea when we’ll be able to hail a Cybercab from the comfort of our own homes. Timing it could prove tough. And with investors piling into the stock, perhaps the risk of missing the ride could exceed the pain that accompanies the next drawdown in the stock. Though I wouldn’t rule out a near-term pullback in the overbought stock, I do not doubt Ives when he says the firm can make a run for the $2 trillion market cap.
Apart from the Cybercab catalysts, which could give a lift to TSLA shares through Trump’s term, the company’s overall AI prowess is worth investing in. If Musk’s xAI does end up being first in the race to artificial general intelligence (AGI), one has to think Tesla stock will benefit greatly. Either way, I think Ives is right in that a big chunk of the market is discounting Tesla’s AI innovations. It’s not just a high-tech car company; it may very well be time to think of it as an AI company.
The bottom line
I’d look for Tesla to hit the pedal on its FSD efforts as it looks to seize the robotaxi opportunity. Also, with Musk standing in Trump’s corner, I’d argue the odds of a robotaxi-driven boost are as high as they’ve ever been. Perhaps any pullbacks from here could be impressive buying opportunities in an AI-driven company that seems well on its way to a $2 trillion valuation.
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