Wedbush Reiterates Outperform on Tesla, $600 PT

Wedbush analyst Daniel Ives reiterated an Outperform rating and $600.00 price target on Tesla (NASDAQ: TSLA).

“AI Remains the Focus for 2026 with Robotaxi Rollout and FSD Updates.

All eyes remain on the company’s AI rollout including the company’s switch in long-term mission of developing a sustainable revenue stream from AI and robotics with ~$20 billion in capex tied to new factories for cybercab, Optimus, battery, and AI compute expansion to reshape the company.

FSD remains a critical focus after the company announced on February 14th that this business will switch to a subscription-only versus the prior one-time purchase to create a stronger recurring revenue business with FSD penetration expected increase to 50%+ and change the financial model/margins for Tesla in our view.

The company has started to rollout unsupervised robotaxi rides in Austin which is an incremental step towards launching in 2026 across multiple cities with important volume production of Cybercabs starting in April/May which remains the golden goose in unlocking TSLA’s AI valuation.

The next step of its AI strategy involves its robotics buildout with Gen3 Optimus on its way to mass production with plans to convert the Model S/X facilities into Optimus production lines to reach a 1 million unit production rate over the coming years.

We also expect an easing of the federal framework for autonomous vehicles throughout 2026 with states having less authority on the autonomous rules framework likely under an Executive Order.

We continue to believe the most important chapter in Tesla’s growth story is now beginning with the AI era here. We maintain our OUTPERFORM rating and our $600 price target.”

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