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Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks in the Spotlight. On June 20, Wedbush’s Dan Ives reiterated his “Outperform” rating on the stock with a $500 price target. According to Ives, Tesla “remains the most undervalued AI play in the market today,” having the potential to roughly double its value by the end of next year. Ives is optimistic that the “golden era of autonomous for Tesla” officially begins with the launch of the roughly 20 Model Y robotaxis in a geofenced area around Austin. They “believe the march to a $2 trillion valuation for TSLA over the next 12 to 18 months has now begun in our view with [Full Self-Driving] and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the US representing the golden goose.”
The company also plans to scale to around 25 cities in the US over the next few years. Deeming the launch as one of the most important chapters in Tesla’s history, the analysts are optimistic that the event is a “foundation of autonomous growth for years to come.”
“We believe the AI future at Tesla (NASDAQ:TSLA) is worth $1 trillion to the valuation alone over the next few years,” Wedbush wrote.
The investor note also noted regulatory tailwinds under Trump presidency, anticipating that federal oversight will help simplify approval for full self-driving technologies.
“Trump wants the U.S. to stay ahead of China in this AI Arms Race.”
Moreover, autonomous technology “is a key factor in who wins AI… with Tesla playing a major role on robotaxis.” Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks on Wall Street’s Radar and 10 AI Stocks Getting Wall Street’s Attention. Disclosure: None.