Wedbush Reiterates Tesla’s Outperforming Rating and $500 PT Ahead of Earnings

Wedbush analyst Daniel Ives reiterated an Outperform rating and $500.00 price target on Tesla (NASDAQ: TSLA).

“The set-up into Tesla earnings tomorrow after the bell is a dramatically different one than 3 months ago.

While on the April earnings call the big focus was Musk officially leaving the Trump Administration and pressure to refocus on being CEO on Tesla….now investors are seeing more of a “wartime CEO” as Elon is laser focused on the Robotaxi expansion in Austin with more cities soon on the docket for this key autonomous initiative.

Front and center for investors are the AI initiatives happening under the hood of Tesla with the Street listening carefully for any more direction around a Tesla investment into xAI which will require a shareholder vote later this year.

There are a number of other key endeavors at Tesla including Optimus and the future of robotics with Tesla one of the clear future leaders in AI in our view.

It starts with autonomous then robotics is the view of Tesla….bulls as we believe the autonomous valuation is worth $1 trillion alone to the Tesla story over the next few years.

We are at a “positive crossroads” in the Tesla story: Musk is laser focused as CEO, Robotaxi/autonomous expansion has begun, demand stabilization has begun especially in China, and Tesla is about to embark on an aggressive AI focused strategy that we believe will include owning a significant piece of xAI.

While near-term and this quarter the numbers are nothing to write home about, we believe investors are instead focused on the AI future at Tesla with a motivated Musk back driving Tesla’s future.

We maintain our OUTPERFORM and $500 price target.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.