Tesla 'Remains The Most Undervalued AI Play': Dan Ives

The public feud between President Donald Trump and Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk has eased for now, but the tension has weighed on Tesla's stock. However, Wedbush analyst Dan Ives remains bullish on Tesla ahead of Thursday's robotaxi launch in Austin. 

What To Know: In a research note published Monday, Ives said that the "timing of this globally watched frenemies situation" is not ideal as it coincides with the robotaxi launch. However, Wedbush still expects Tesla to launch its robotaxi services in 20 to 25 cities over the next year without the Trump feud standing in Tesla's way. 

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In fact, Ives thinks there is potential for Trump and Musk to mend their relationship behind the scenes, as both have mutual interests: Trump wants Musk's support for the Republican party and Musk needs Trump's backing for federal autonomous vehicle regulations.

$1 Trillion Opportunity: The Wedbush tech analyst predicts that AI and autonomous vehicles will be a $1 trillion opportunity for Tesla and that the necessary regulatory initiatives will be fast-tracked by the Trump administration. 

Though there will be some bumps in the road along the way, Ives sees the potential for a $2 trillion Tesla market cap by the end of 2026. 

"Rome was not built in a day," Ives said and maintained that Tesla "remains the most undervalued AI play in the market today."

Wedbush maintained Tesla shares with an Outperform rating and a $500 12-month price target. 

TSLA Price Action: Tesla shares were down 0.13% at $294.75 at the time of publication Monday, according to Benzinga Pro. 

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