Investment firm Wedbush has raised its price target on Tesla shares from $300 to $400 and maintained its Outperform rating. The price target increase comes amid optimism that Donald Trump won the US presidential election.
The price target adjustment comes amid expectations that Trump’s recent victory will have a positive impact on Tesla’s autonomous driving and artificial intelligence (AI) initiatives. Wedbush expects the new administration to accelerate the company’s development of full self-driving (FSD) and AI technologies by easing federal regulations that have previously hampered progress, according to investing.com.
According to Wedbush’s estimate, AI and autonomous vehicle capabilities represent a $1 trillion opportunity for Tesla. The firm believes that under a Trump presidency, the company will face fewer regulatory hurdles. This, in turn, will greatly benefit Tesla’s efforts to advance these technologies. In a note, the firm expressed confidence in the company’s growth prospects, saying that expected changes in the federal regulatory environment could be a turning point for Tesla’s autonomous and AI story in the coming years.
After Trump won the US presidential election, Tesla’s stock price surged to surpass the $1 trillion mark for the second time in the company’s history. The company first reached this impressive milestone nearly two years ago.
Meanwhile, many firms continue to increase their stake in Tesla. Vanguard Group Inc. brought its total shares to 233.6 million, now worth more than $79 billion. The purchase of an additional 3.8 million shares last quarter reflects the company’s long-term investment strategy. International Assets Investment Management LLC increased its stake in Tesla by 35,611.2% in the third quarter. The firm now owns 11.05 million shares. Strategic Financial Concepts LLC increased its Tesla holdings by 21,816% in the second quarter, accumulating 5.9 million shares. ARK Investment Management LLC increased its Tesla holdings by 2.6% in the second quarter, bringing its total shares to 5.31 million. National Pension Service increased its stake by 15.3% in the third quarter, now owning 5.18 million shares.
Institutional investors now own about 66.2% of Tesla shares, demonstrating continued confidence in the company.
