Wedbush analysts, led by Dan Ives, have significantly adjusted their price target for Tesla, elevating it to $500 from its previous level of $350. This optimistic prediction is considerably higher than the average visible alpha benchmark of $296 and reaffirms their position as the most enthusiastic bulls on the Street.
This revised price target comes in the wake of Tesla's planned launch of fully autonomous vehicles in Austin, Texas, slated for June. The analysts believe that the success of this autonomous vision pivot will be the major traction for Tesla's future valuation upside.
In the past, Wedbush had set a target of $550 for Tesla. However, perceived uncertainties tied to CEO Elon Musk's political engagements, which caused what the analysts termed a "brand crisis tornado," led to a downward adjustment in the forecast.
Ives has previously urged Musk to restrict his involvement in government affairs and opined this week that a more committed Musk seems to have emerged after the recent earnings call, where he announced his intent to scale down his government work.
Tesla is harboring grand ambitions to launch paid autonomous rides and develop a more wallet-friendly vehicle. In recent interviews, Musk confirmed that these plans are progressing as intended. Despite speculative reports hinting at a potential shift in leadership, Musk reassured investors that he plans to retain his CEO position for the next half-decade.
Tesla's shares are currently riding a four-week wave of wins, further boosting investor confidence.