“Tesla could double in 18 months,” says Wall Street analyst; “Get out the popcorn.”

Wedbush Securities analyst Dan Ives expects Tesla (NASDAQ: TSLA) stock price to likely continue to rise in the coming months due to the company’s advances in artificial intelligence (AI) and autonomous driving.

Specifically, Ives suggested that Tesla stock could potentially double within the next 18 months, with self-driving vehicles and AI serving as key growth factors, he said in an interview with CNBC.

“I think get out the popcorn because I think Tesla stock could ultimately double from here in the next 18 months. “It’s obviously been parabolic, but when you talk about autonomous driving itself, we think it’s worth a trillion dollars,” he said.

Ives emphasized that while Tesla’s recent stock rise was notable, the potential for further gains remains strong, especially given the development of autonomous driving capabilities. He set a conservative price target of $500 to $600.

The analyst also highlighted that the company’s margins have stabilized, which could help further boost investor confidence. Despite ongoing skepticism from critics, Ives believes the company is well-positioned to become a dominant force in both the automotive and AI sectors.

Looking ahead, the expert predicted that Tesla’s market capitalization could eventually reach $2 trillion and the company would become a major market player by 2025.

Impact of the Trump Administration on Tesla

In fact, the analyst remains bullish on the stock, claiming it will likely see more growth during the second Donald Trump administration. He believes the government would likely accelerate the rollout of autonomous driving technology at the federal level.

With the expected elimination of the $7,500 electric vehicle tax credit, Ives expects Tesla to thrive because of its market dominance.

But while Ives expressed optimism about Tesla, UBS analyst Joseph Spak warned against speculation about the company’s AI valuation. Spak maintained his “Sell” rating on TSLA and increased his target to $226 from $197.

“We understand that the market is increasingly viewing TSLA as an AI play rather than an EV player. However, when the value that can be tangibly attributed to the auto business reaches the current average (~17%), the stock tends to enter a downtrend,” he said.

What’s next for Tesla stock?

Meanwhile, a review of Tesla’s technical setup shows the stock has risen to a 32-month closing high. Technical strategist Larry Tentarelli noted in an X post on November 29 that shares have the potential for further gains as long as they remain above the $300 level.

Adding to the optimism is the possibility of a monthly crossover in the Price Momentum Oscillator (PMO), an indicator that often precedes significant upward moves.

At the end of the last trading session, TSLA was valued at $345.38, up nearly 4% on the day. However, EV stock is down 2.3% on the weekly chart.

In summary, Tesla’s advances in AI and autonomous driving fuel optimistic forecasts, even as opposing views highlight risks. The stock’s future will depend on its ability to succeed in these areas.

Featured image via Shutterstock