Tesla (TSLA) is making strides in the artificial intelligence market (AI), a move that could do good for the company’s stock in 2025. Price predictions for the stock are getting higher as 2025 inches closer, with the EV maker set to be a top performer in 2025. Founder Elon Musk’s role in the incoming presidential administration is expected to be a driver for the company’s stock. In the days following Donald Trump’s election win, TSLA stock boomed, and it is maintaining that performance in the final days of 2024.
Now, the company is looking to capitalize off of a market that is blowing up this decade: AI. Elon Musk has long hinted at autonomous driving and robotaxi networks powered by Tesla’s AI systems. This vision is becoming a reality as the company enhances its Full Self-Driving (FSD) software. Successfully launching this software will certainly peak investors’ interest, as they are already hyping TSLA stock ahead of 2025.
Tesla’s AI Movement Goes Beyond Cars
The AI move for Tesla doesn’t just end with its electric vehicles though. Musk’s Tesla Optimus robot is another push by the company into autonomous, AI-powered labor/assistance. Optimus is a humanoid robot built by Tesla and designed to interact with its surroundings using two arms, hands, and legs. Displaying the AI robots at a recent event, Elon Musk said about the Tesla bots “I think this will be the biggest product ever of any kind.” He also predicts the prices of goods like the Optimus robot will drop over time, resulting in an “age of abundance.” Tesla’s moves in AI for its vehicles and new robots are expected to reap huge benefits for investors, as new price predictions indicate.
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Wedbush analyst Daniel Ives is among the analysts projecting big things. Specifically, he increased his price target to $515, which would be a record price for the company’s stock. Moreover, he noted that a second Trump administration will bring favorable regulatory opportunities for the autonomous driving sector. Vijay Rakesh of Mizuho Securities also recently upped the firm’s prediction for Tesla stock to an “outperform” grade expectation. Mizuho sees ‘idiosyncratic tailwinds’ taking Tesla higher in 2025, according to a note.
Tesla stock is up nearly 100% since Election Day. Moreover, experts expect it to climb further next year once Trump officially takes office. Furthermore, analysts predict that many of the regulatory battles that have slowed progress will cease under Trump. Expectations are that the company will soar to a $2 trillion market cap by the end of 2025.