Tesla Inc (NASDAQ:TSLA) has bagged a share price target upgrade from Wedbush analysts on the belief that the "age of autonomous" vehicles has arrived with Donald Trump’s return as president.
Trump’s tenure was set to be a “total game changer” for Elon Musk’s firm’s efforts on autonomous driving and artificial intelligence, analysts said in a note.
Such opportunities were worth at least US$1 trillion to Tesla alone, analysts added, with Trump set to fast-track initiatives and clear regulatory hurdles.
“In essence, Musk made a strategic and big bet on a Trump White House win that will be known as a ‘bet for the ages’ for Tesla bulls.
“Now, Tesla and Musk are set to reap the benefits from a new friendlier regulatory era.”
Wedbush forecast Tesla to hit a US$2 trillion market capitalization over the coming 18 months, fuelled by full self-driving rollout across its installed base and cybercab acceleration.
A new US$550 share price target was set, against US$515 previously, and an ‘outperform’ rating was reiterated.
“We believe Tesla remains the most undervalued AI play in the market today,” Wedbush added.
Shares were trading at US$418.96 ahead of Wednesday’s open.