Wedbush's Dan Ives Sets the Highest Target Price for Tesla After Musk Buys $1B of the EV Stock

Renowned Wedbush analyst Daniel Ives set the highest price target of $600 per share for the Tesla (Nasdaq: TSLA) stock more than a week after Elon Musk purchased 2.5 million company shares worth $1 billion (£744 million), according to a filing with the US Securities and Exchange Commission, signifying a vote of confidence in the EV maker. The latest stock buy marks his first open market stock investment since 2020.

The stock price has gained over 7% since the news and is up by more than 68.1% in the past six months, despite phases of severe volatility in recent times due to declining sales, stiff competition, the end of EV tax breaks, and brand damage resulting from Musk's political involvement with DOGE. The stock price closed at $443.21 (£329.80) on Monday.

Musk already held a nearly 13% stake in Tesla, but he continues to seek more control of the firm, which has been investing heavily in robotaxis, automation, and artificial intelligence. The company's board also recently proposed a compensation plan valued at around $1 trillion (£744 billion), which would grant Musk up to 12% of the firm's shares if it achieves specific targets.

AJ Bell's Danni Hewson said Musk is seeking to build back his stake in Tesla since 'markets like it' when company leaders buy into their own companies, as it showcases their positive outlook about the firm's future performance.

Webush maintained its outperform rating on the Tesla stock and raised its 12-month price target by $100 (£74), citing the company's accelerated path to transforming the AI revolution. The brokerage believes Tesla could reach a $2 trillion (£1.4 trillion) valuation by early 2026 and a $3 trillion (£2.2 trillion) valuation by the end of next year, as the company commences full-scale production in its autonomous and robotics segments.

Wedbush expects Tesla robotaxis to be launched in over 30 US cities within the next year. It forecasts that the AI and autonomous opportunity for Tesla is worth $1 trillion alone. Analysts also expect the end of existing regulatory hurdles related to full self-driving to be cleared faster under the Trump Administration.

Ives stated that Tesla could own around 70% of the global autonomous market over the next decade, citing the company's superior AI footprint. Meanwhile, FSD penetration could surge to over 50% in the future.

The brokerage also noted that the new pay package for Musk, if approved at the shareholder meeting in November, could be a major milestone in the AI story taking hold at Tesla.

In terms of EV deliveries in the near term, Wedbush said it sees signs of global demand stabilisation, which should enable Tesla to beat consensus Q3 delivery estimates, with improving demand in China. However, rebounding to a nearly 500,000 quarterly run-rate will be crucial as Tesla now looks to introduce new models in 2026. While there are still weak pockets in Europe, signs of demand improvement are emerging, with a stronger growth trajectory into 2026.

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