The stock of Tesla has experienced spectacular gains, and the news today only adds fuel to the fire. Analysts have also increased their targets for Tesla amid growing optimism over the future prospects of the company.

Significant Price Target Hike

The key analyst for Wedbush raised the Tesla stock price target from $400 to $515-a pretty serious hike and a vote of confidence in the company's prospects. He also spoke of a "bull case" wherein the stock could reach $650 at the end of next year.

Reasons for the Rise

The price target hike was mostly due to the benefits the new administration is expected to usher in for Tesla. According to some analysts, the Trump administration is expected to be a "total game changer" regarding Tesla's autonomous driving and AI projects. This could significantly raise the market value of Tesla as well as spur more growth.

Market Reaction

After the announcement, Tesla stock soared to a new all-time high, briefly reaching $447.41 just after markets opened. This adds to a bigger climb; Tesla shares are more than 75% higher this year.

Analyst's Optimistic Outlook

He emphasized that Tesla's FSD and AI opportunity is at least $1 trillion itself. Tesla will likely increase its market capitalization to as high as $2 trillion by the end of 2025 once it sees likely regulatory support from the new administration.

Conclusion

This rise in Tesla's stock price target reflects the company's great performance and promising future. Investors are feeling quite optimistic about the growth this company may achieve through its continuous improvements in autonomous driving and AI, along with some political favors.