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Posted December 15, 2025 at 9:45 am
Dan Ives, the managing director of equity research at Wedbush Securities, made a bold prediction for Tesla Inc. (NASDAQ:TSLA) on Monday.
Ives shared his forecast in a post on X, highlighting the significance of the autonomous and robotics chapter for Tesla’s future.
He foresees a “monster year” ahead for the company, with a potential $2 trillion market cap by the end of 2026.
Ives also suggested a bullish scenario of a $3 trillion market cap by the end of 2026, attributing the potential growth as the “AI chapter takes hold” at Tesla.
This prediction by Ives comes at a time when Tesla is making significant strides in the autonomous driving space. Just last week, a driverless Tesla Model Y was spotted in Austin, Texas, hinting at the company’s progress in this area. In response to the post, CEO Elon Musk reiterated Tesla’s aim to launch driverless Robotaxi services, stating, “Testing is underway with no occupants in the car.”
Notably, Musk’s previous statement echoes Ives’ prediction. The CEO had said scaling Full Self-Driving (FSD) and the Optimus robot are key to Tesla’s Master Plan IV, predicting that Optimus could account for about 80% of the company’s value.
Earlier in December, despite Tesla’s dominance in the electric vehicle sector, a Morgan Stanley analyst downgraded the stock due to its stretched valuation. The analyst acknowledges Tesla’s diversified business but argues that current valuation metrics no longer support a buy rating, and expects Tesla shares to face headwinds in EV sales through 2026.
This move was in line with the views of valuation guru Aswath Damodaran, who had previously criticized the irrational valuations of top tech giants, including Tesla.
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Originally Posted December 15, 2025 – Tesla Could Hit A $2 Trillion Market Cap By 2026 — And Even $3 Trillion In A Bull Case As Its ‘AI Chapter’ Finally Takes Hold, Says Top Analyst
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I am sure Tesla will be a 2m cap company but the has nothing to do with the competitive landscape for both self driving and robots but more to do the Elon’s almost God like ability to whip the faithful into a frenzy with projections repeated on monthly basis. I can only assume the fan boys have a very short term memory – full self driving has been pitched constantly over the last 5 years – it may be pitched for the next five years as well.