Wedbush analysts reiterated their optimism about Tesla Inc. shares in a research note on Tuesday. The firm raised its price target (PT) to $300 from $275 following the Q2 2024 production and delivery report. Analysts also have a bullish case of $400 for 2025.

The note highlights a significant turnaround in demand for Tesla products, as noted in a report by investing.com. Better-than-expected second-quarter deliveries marked a “major turning point” for the company, Wedbush wrote.

The firm noted that despite expectations of failure due to unstable global demand for electric vehicles, Tesla demonstrated strong performance. According to analysts, this was partly possible thanks to a “mini rebound” in China and pricing stabilization. The published results show Tesla is well on track to hit the 2 million units annual mark this year.

Wedbush noted Tesla’s undervalued position as a player in the artificial intelligence (AI) market. This is expected to be highlighted at the upcoming Robotaxi Day on August 8th. At the event, Tesla will unveil its vision of Full Self-Driving (FSD) and the autonomous future by unveiling a new vehicle model. This event is seen as a potential catalyst and historic moment for Tesla’s history.

The firm’s analysts believe the autonomous and FSD vision is key to Tesla achieving a valuation of more than $1 trillion. The recently released FSD v12.4 and the official testing of FSD in China are considered game-changers. In an optimistic scenario, Tesla’s FSD segment alone could be worth $1 trillion.

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