In the ever-evolving world of electric vehicles and artificial intelligence, Tesla Inc. has once again captured Wall Street’s attention with a bold upgrade from one of its staunchest supporters. Wedbush Securities analyst Daniel Ives has elevated his price target for Tesla stock to a new Street-high of $600, up from $500, while maintaining an “Outperform” rating. This move, detailed in a recent note, underscores Ives’ belief that Tesla’s push into AI-driven autonomy represents a transformative chapter for the company, potentially propelling its market value toward $3 trillion by 2026.

Ives’ optimism hinges on Tesla’s advancements in autonomous driving technology, including the anticipated rollout of robotaxis. He argues that under CEO Elon Musk’s leadership, Tesla is entering its “next stage of growth” as a “wartime CEO,” with robotaxis expected to expand aggressively to over 30 U.S. cities within the next year. This projection comes amid a favorable regulatory environment, particularly with potential easing under a Trump administration, which Ives sees as a catalyst for faster adoption of self-driving vehicles.

Autonomy as the Core of Tesla’s Valuation Surge

Recent reports highlight how Ives views Tesla’s AI and robotics initiatives as undervalued gems. According to coverage from TipRanks, the analyst estimates that the AI/autonomous opportunity alone could be worth $1 trillion to Tesla, dwarfing its current electric vehicle business. This sentiment echoes earlier analyses where Ives has consistently positioned Tesla as the most undervalued AI play in the market, a theme he’s amplified since the generative AI boom ignited by tools like ChatGPT in 2022.

Supporting this view, Tesla’s third-quarter delivery numbers, while facing some headwinds from earlier in the year, are poised for recovery. Ives points to the company’s edge in full self-driving (FSD) software and the Optimus humanoid robot project, slated for broader deployment in 2026, as key drivers. These elements, he contends, position Tesla not just as an automaker but as a leader in robotics and AI infrastructure, potentially adding hundreds of billions to its valuation.

Market Reactions and Broader Investor Sentiment

Posts on X, formerly Twitter, reflect growing excitement among investors, with users noting Ives’ track record of bullish calls on Tesla dating back to 2023 when he raised targets amid the supercharger network expansion. One prominent post from Ives himself in mid-2024 reiterated that Tesla’s AI story could exceed $1 trillion in value, a figure that’s now central to his $600 target. This buzz aligns with real-time market data showing Tesla shares climbing in pre-market trading following the announcement, up over 3% as of September 26, 2025.

Meanwhile, outlets like Sherwood News emphasize that investors are “underestimating the transformation underway” at Tesla, particularly in AI. Ives warns that overlooking this shift could mean missing out on what he calls the “biggest growth chapter” in the EV maker’s history, driven by autonomous tech that could disrupt transportation on a global scale.

Challenges Amid the Optimism

Yet, not all is smooth sailing. Earlier in 2025, Ives had slashed his target to $315 amid political turbulence, labeling Tesla a “political symbol” in a report covered by Business Insider. That cut reflected concerns over shrinking vehicle deliveries in the first half of the year, but Ives has since pivoted, citing rebounding demand and AI momentum as reasons for the rebound. Critics, however, question the feasibility of rapid robotaxi scaling, pointing to regulatory hurdles and competition from players like Waymo.

Despite these risks, Ives’ analysis in TeslaNorth.com projects a path to a $2 trillion to $3 trillion market cap by 2026, fueled by Tesla’s unmatched battery ecosystem and software prowess. He draws parallels to the AI revolutions at companies like Nvidia, suggesting Tesla’s integration of hardware and AI could yield similar explosive growth.

Looking Ahead: Tesla’s Place in the AI Ecosystem

Broader web searches reveal a consensus building around Tesla’s AI pivot. A June 2025 piece in Yahoo Finance quoted Ives affirming Tesla’s potential to double its value through AI, while recent X discussions speculate on Musk’s influence in accelerating federal approvals for autonomy. This narrative positions Tesla at the forefront of an AI-driven industrial shift, where vehicles evolve into intelligent platforms.

For industry insiders, the real intrigue lies in execution. Will Tesla’s FSD software achieve the reliability needed for widespread robotaxi fleets? Ives bets yes, forecasting that by 2030, autonomy could contribute the lion’s share of Tesla’s revenue. As the company prepares for its next earnings call, all eyes are on delivery figures and AI updates, which could validate or challenge this rosy outlook.

Investor Implications and Strategic Shifts

Investors weighing Tesla’s prospects should note the stock’s volatility—trading at around $426 recently, it’s far from Ives’ $600 target, implying significant upside. Comparisons to IBM, another Ives favorite in the AI space, suggest diversified plays, but Tesla’s unique blend of EVs and AI sets it apart. As per AskTraders, this upgrade reflects “bullish optimism” on Tesla’s ability to dominate autonomy.

Ultimately, Ives’ call serves as a reminder of Tesla’s dual identity: an EV pioneer morphing into an AI powerhouse. While skeptics abound, the analyst’s history of accurate predictions—such as his 2023 target hikes amid Tesla’s energy business growth—lends credibility. For those in tech and finance, monitoring Tesla’s AI milestones will be crucial, as they could redefine not just the company, but entire sectors of the economy.