Recently, Tesla has received two new bullish target prices. Analysts from investment banks Wedbush and Mizuho have both raised the stock's target price to $515, which is more than 7% higher than the current level, making it the highest target price given by Wall Street analysts.

On Tuesday, Tesla's stock price set a new historical high for the fifth consecutive day, closing up 3.64% at $479.86. Since Donald Trump was elected president of the USA and won a second term, Tesla has been Bullish, with the stock price having increased by over 90%.

According to media reports, Trump's transition team is suggesting comprehensive reforms, cutting off support for Electric Vehicles and charging stations, and strengthening efforts to prevent foreign Autos, parts, and Battery materials from entering the USA. Although this may damage Tesla's sales, the impact on Tesla's competitors (including General Motors and other traditional automakers) will be greater.

Media reported last Friday that Trump's team has suggested the new government cancel a directive from the National Highway Traffic Safety Administration (NHTSA) that requires Auto Manufacturers to report incidents involving autonomous driving. This is clearly favorable for Tesla. It is reported that Tesla has reported over 1,500 incidents involving its FSD and Autopilot Software to NHTSA.

According to media reports last month, members of Trump's transition team told advisors that they plan to make the federal legal framework for fully autonomous Autos a priority for the Department of Transportation. This indicates that the Trump administration intends to ease regulations on autonomous Autos. This is a huge Bullish factor for Tesla. Musk has stated multiple times that Tesla's future depends on FSD and autonomous driving technology.

Mizuho: Tesla faces "special tailwinds."

Mizuho analysts have upgraded Tesla's rating from "neutral" to "outperforming Large Cap," and raised the Target Price from $230 per share to more than double that at $515.

Analysts led by Vijay Rakesh at Mizuho have stated, "We are upgrading Tesla's rating to outperform Large Cap, as we believe Tesla will face some unique tailwinds over the next four years."

These "unique tailwinds" include expected relaxations in autonomous driving regulations and policies proposed by Trump, such as ending tax credits for Electric Vehicles. Mizuho's analysis indicates that these policy measures will place Tesla in a more favorable position compared to its peers, given the company's lower cost structure for Electric Vehicles and a more profitable Electric Vehicle roadmap, with plans to launch low-cost Autos in the coming years.

In the summed valuation model, Rakesh estimates Tesla's valuation at $1.8 trillion, with the core Auto and Energy Business valued at $711 billion, the autonomous driving Business valued at $614 billion, and humanoid Robots valued at $472 billion.

Mizuho estimates that by 2040, Tesla will sell 7.2 million humanoid Robots at an average price of $0.023 million, generating revenue of $166 billion.

Wedbush: Bullish trend depends on the future of autonomous driving.

According to Wedbush analyst Dan Ives, Tesla's bullish trend largely depends on its future in autonomous driving.

Ives raised Tesla's Target Price from $400 to $515 and stated that in a bullish scenario, the stock could soar by 38% to $650 by 2025.

"We are raising Tesla's Target Price from $400 to $515 because we believe Trump's presidency will fundamentally change Tesla and Musk's narratives around autonomous driving and AI over the next four years," Ives stated in a report.

Eves emphasized that his bullish Target Price does not include the potential upside brought by Tesla's development of the humanoid robot "Optimus Prime," but rather depends on the company's continuous growth in the field of AI. He pointed out that Tesla remains the most undervalued AI company in today's market.

Editor/Rocky