Tesla's Golden Era: Dan Ives Raises Price Target to $550, Sees Bull Case Upside of Over 56% with Optimus Robot

Wedbush Securities analyst Dan Ives has raised Tesla's (TSLA) price target to $550, signaling growing confidence in the electric vehicle (EV) manufacturer's demand and autonomous potential under President Donald Trump's administration. Ives characterized the emerging landscape as a "golden era" for CEO Elon Musk and Tesla heading into 2025. The price target increase comes amid complex market dynamics, including challenges in vehicle deliveries and potential policy changes.

Tesla's U.S. deliveries declined 5.6% in 2024 to 633,762 units, yet the company remains the dominant electric vehicle brand nationwide. Simultaneously, debates around Tesla's future have intensified. Investor Gary Black cautioned against inflated expectations for the Optimus robot program, estimating it could add only $0.70 to earnings per share by 2027. Bank of America analyst John Murphy valued the Optimus segment between $14 billion and $95 billion, representing just 2% of Tesla's total estimated value. Wedbush's price target does not yet include Optimus in its valuation, but Ives has a bull case target of $650, representing a 56% increase from the current trading price without factoring in Optimus' potential.



The potential elimination of the $7,500 federal electric vehicle tax credit under the Trump administration introduces additional uncertainty. While Musk previously suggested minimal impact on Tesla, Black warned of significant pricing challenges. Notably, Tesla's stock performance has lagged behind market expectations, with fiscal 2025 and 2026 earnings estimates declining 39% and 45% respectively over the past year. Despite these challenges, Ives remains optimistic, setting a bull case target of $650, representing a 56% increase from the current trading price, without factoring in Optimus' potential.



Price Action: Tesla stock closed at $415.11 on Wednesday, down 2.11% for the day. In after-hours trading, the stock dipped further 0.32%. Over the past year, Tesla's stock has gained 98.81%, according to data from Benzinga Pro. Tesla has a consensus price target of $308.4, with a high of $550 and a low of $24.86. The average target from Wedbush, Piper Sandler, and Barclays is $458.33, implying a 10.77% upside.

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In conclusion, Dan Ives' bullish outlook on Tesla under the Trump administration, with a price target of $550 and a bull case of $650, reflects his confidence in the company's growth prospects and market position. The potential impact of the Optimus robot project on Tesla's valuation and stock price remains uncertain, but if successfully executed, it could drive a significant increase in the company's market cap and investor confidence. As Tesla navigates the complex market dynamics and potential policy changes under the Trump administration, investors should closely monitor the company's progress and the evolving regulatory environment.