Tesla's price target jumps to $500 as growth era approaches

On May 23, 2025, in the United States, Wedbush Securities analyst Dan Ives indicated a positive outlook for Tesla, forecasting significant growth in the electric vehicle market driven by autonomous vehicle advancements. Ives raised his price target for Tesla by $150 to $500, suggesting that this could lead to a 46.6% surge in share prices over the next year. This adjustment marks a new peak for Tesla's price targets on Wall Street, as reported by LSEG. Ives expressed confidence that the imminent launch in Austin would initiate a crucial phase for Tesla, dubbing it the 'golden age' of autonomous vehicles. He emphasized that the transition to this new chapter is pivotal for the company, as it seeks to capitalize on the opportunities arising from developments in artificial intelligence and autonomous technologies. The analyst elaborated that the potential market associated with AI could be valued at over $1 trillion for Tesla. Earlier in 2025, Tesla faced considerable challenges, including a notable drop of over 15% in its shares. The situation worsened as CEO Elon Musk's involvement with the government caused unease among investors. However, Ives highlighted that with Musk reaffirming his commitment to lead Tesla, the focus could shift towards the company's involvement in the unfolding AI revolution. The expert reiterated that substantial valuation growth for Tesla hinges on the successful realization of its autonomous vision. Furthermore, the optimistic outlook from Ives aligns with a broader consensus among analysts, who generally maintain positive ratings for Tesla's stock. Ives anticipated that over the next 12 to 18 months, Tesla's valuation could approach $2 trillion, fueled by the company's strategic advancements in autonomous driving and AI technologies. Overall, continued investor confidence and the forthcoming launch of autonomous features are expected to bolster Tesla's market position significantly.