Tesla Inc's (NASDAQ:TSLA) valuation could see material upside from its artificial intelligence roadmap, according to analysts at Wedbush, who have repeated an ‘Outperform’ rating and $600 price target.
The broker expects the company’s push into autonomous vehicles and robotics to drive a re-rating, with volume production of its Cybercab and Optimus products due to begin in 2026.
“We believe the China story is starting to improve markedly for Tesla, which should be a tailwind for Musk & Co into 2026,” Wedbush said in a note.
The report highlighted Tesla’s relative insulation from China’s tightening grip on rare earth exports. Analysts pointed to the company’s Shanghai Gigafactory and supply chain integration as competitive advantages, especially compared to other US automakers.
Wedbush also viewed the launch of lower-cost Model 3 and Model Y variants as a positive step to revive demand, particularly as EV tax credits expire.