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Wedbush Securities predicts Tesla Inc.‘s (NASDAQ:TSLA) artificial intelligence initiatives could see major gains under a Trump presidency, despite potential headwinds for the broader electric vehicle sector.
What Happened: Dan Ives, a leading analyst at Wedbush Securities, projects that Donald Trump‘s return to the White House could significantly boost Tesla’s AI ambitions, potentially unlocking “$1 trillion of incremental AI valuation” for the electric vehicle maker over the coming years.
However, the outlook for the broader EV industry appears mixed. Tesla CEO Elon Musk, who actively campaigned for Trump, has acknowledged that the incoming administration would likely eliminate EV subsidies and tax credits, as discussed during Tesla’s second-quarter earnings call.
“We believe Trump in the White House changes the landscape for Elon Musk and Tesla,” Ives said during an appearance on CNBC’s Squawk Street. The analyst characterized Musk’s alignment with Trump as a “major strategic bet” that could prove “very bullish for Tesla’s AI/autonomous story.”
