Why Tesla (TSLA) Stock Is Advancing Today

Tesla (TSLA) stock is rising 4% after Dan Ives, a well-known analyst at investment bank Wedbush, issued a positive note on TSLA stock yesterday.

Why Ives Is Still Bullish on TSLA

The analyst believes that, in the long term, the close ties between TSLA CEO Elon Musk and President Donald Trump will prove to be quite helpful for the automaker. Specifically, Ives thinks that the Trump administration will institute policies towards autonomous vehicles that will be positive for TSLA. He added that the “bark (of Musk’s association with Trump) is way worse than (its) bite” as far as the negative impact on Tesla’s brand is concerned.

Also importantly, Ives remains upbeat on Tesla’s ability to benefit significant from its autonomous vehicles. In light of all of the preceding, positive catalysts, the analyst predicts that TSLA’s market capitalization  could surge by $1 trillion in the upcoming years.

And according to the analyst, in the future TSLA can also get lifts from its launch of more affordable EVs and its sale of humanoid robots.

Ives kept a $550 price target and a Buy rating on TSLA.

In the last month, the shares have dropped 15.5%, but they have risen 12.5% in the last three months.

While we acknowledge the potential of TSLA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.