Wall Street analyst updates Tesla stock price target

Tesla (NASDAQ: TSLA) has received a fresh vote of confidence from Wall Street, with Wedbush reiterating its bullish stance on the stock.

In this vein, analyst Daniel Ives maintained an ‘Outperform’ rating and a $600 price target. The valuation implies an upside of almost 60% from TSLA’s press-time price of $382.

The reaffirmed outlook comes as Tesla sharpens its focus on artificial intelligence and in-house chip production. Central to this strategy is the planned development of Terafab chip factories in Austin, which are expected to support growing demand for AI and compute power.

The initiative includes separate facilities aimed at powering Tesla’s vehicle ecosystem and humanoid robotics, as well as infrastructure tied to data processing ambitions.

The move reflects broader supply pressures across the semiconductor industry, where major players such as Micron Technology, TSMC, and Samsung Electronics have struggled to fully meet surging demand. By pushing into chip manufacturing, Tesla is positioning itself to reduce reliance on third-party suppliers while accelerating its AI roadmap.

Wedbush views the Terafab initiative as a foundational step in Tesla’s evolution into a major AI-driven company. The firm also highlighted the longer-term strategic implications of closer ties between Tesla and SpaceX, both led by Elon Musk.

At the same time, Ives sees the chip factory push as an early signal of deeper integration between the two companies, with the potential for a merger emerging as a longer-term possibility.

Wall Street cautious on Tesla stock

Away from Ives’ outlook, the rest of Wall Street remains cautious about Tesla’s stock price over the next 12 months. Consensus data from analysts at TipRanks shows a “Hold” rating.

The rating is based on 31 Wall Street analysts, of whom 13 recommend buying the stock, 11 suggest holding, and 7 advise selling.

The average 12-month price target for Tesla stands at $399.25. The highest estimate reaches $600, indicating strong bullish conviction from some analysts, while the lowest forecast drops to $25.28.

Overall, the spread in projections and the neutral consensus rating point to a market that remains divided on Tesla’s growth outlook, with expectations tempered by both optimism around innovation and concerns over valuation and execution.

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