Tesla Inc (NASDAQ:TSLA) is set to debut its long-anticipated Robotaxi this week, with a key launch event in Austin scheduled for June 12.
Ahead of the launch, tensions between CEO Elon Musk and US President Donald Trump show signs of easing, according to Wedbush analyst Dan Ives.
“The Trump/Musk soap opera appears to be cooling down (for now),” Ives wrote, referring to last week’s public feud between the two once-close allies.
While not expecting a full reconciliation, he noted that both sides “are slowly moving on,” which could help alleviate investor concerns over potential political headwinds facing Tesla’s autonomous ambitions.
The feud had raised fears among some investors that a second Trump administration might pose regulatory hurdles to Tesla’s full self-driving (FSD) rollout. But Ives sees a different outcome.
“At the end of the day, Trump needs Musk to stay close to the Republican party and Musk needs Trump for many reasons—including a green light on a federal framework for autonomous,” he noted.
Robotaxi ‘major inflection point’
Tesla’s Robotaxi program, central to Musk’s vision for an autonomous future, is seen by Ives as a major inflection point for the company. Wedbush estimates the Robotaxi could expand into 20 to 25 US cities over the next year.
“We believe the vast majority of valuation upside looking ahead for Tesla is centered around the success of its autonomous vision,” Ives wrote.
Ives pegs the value of Tesla’s AI and autonomous business opportunity at more than $1 trillion, and sees a potential path to a $2 trillion market cap by the end of 2026 in a bull-case scenario—driven by increasing penetration of FSD across Tesla’s installed base and the acceleration of the company’s “Cybercab” fleet.
While acknowledging that Tesla’s autonomous journey will face challenges, Ives said the company’s global scale and unmatched capabilities put it in a strong position to lead the market. He also sees potential for Tesla to license its technology to other automakers.
Competitors such as Waymo and Uber will benefit as well, Ives noted. But, he added, the “true autonomous winner” is Tesla.