Investing.com–Tesla Inc (NASDAQ:) is poised for significant gains as the new Donald Trump administration signals accelerating regulatory support for artificial intelligence and autonomous vehicles, Wedbush analysts said , adding that Tesla remains the most undervalued AI play on the market. market to date.
There is potential for a more favorable regulatory environment for Tesla’s AI-based projects, particularly its Full Self-Driving (FSD) technology and autonomous Cybercab initiatives, Wedbush analysts said in a note.
Wedbush highlighted the likelihood that the Trump administration will prioritize establishing a federal framework for autonomous vehicles, which could potentially remove long-standing regulatory hurdles for Tesla. Analysts predict these changes could unlock up to $1 trillion in AI value for Tesla, solidifying its trajectory toward a $2 trillion valuation within 18 months.
Analysts reiterated an outperform rating on Tesla, with a 12-month price target of $400.
“Musk’s significant influence in the Trump White House is already having a major influence and, ultimately, the golden path for Tesla around Cybercabs and autonomous vehicles is now within reach with an emboldened Trump/Musk strategic alliance that plays out in real time and is entirely consistent with our thesis,” the Wedbush analysts wrote.
The research note also suggests the potential creation of an “AI czar” role within government, which could catalyze broader AI advancements in the tech industry. For Tesla, the timeline for meeting its AI and autonomous vehicle goals could be accelerated, aligning with competitive pressures from China’s progress in autonomous technology, according to Wedbush.
The planned elimination of tax credits for electric vehicles under Trump’s policies poses a challenge for the entire industry. However, analysts view Tesla as being in a unique position to navigate this environment due to its scale and dominance in the electric vehicle market, making it less dependent on subsidies.
Tesla’s strategic pivot toward AI and autonomy strengthens its position as a leading disruptive technology company, not just an automaker, analysts said. Investors are closely monitoring regulatory developments as they could have significant implications for Tesla’s growth and market leadership in the autonomous sector.
“Now begins the next stage of this broader strategic vision for Tesla, which is the era of autonomy and AI, as we believe Tesla remains the most undervalued AI play on the market today ‘today,’ the analysts added.