Dan Ives, the managing director of equity research at Wedbush Securities, made a bold prediction for Tesla Inc. (NASDAQ:TSLA) on Monday.



<h2>Ives’ Bullish Predictions For Tesla </h2>



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.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div>
<blockquote>Heading into 2026 this marks a monster year ahead for Tesla/Musk as the autonomous and robotics chapter begins. We believe Tesla hits a $2 trillion market cap in 2026 and in a bull case scenario $3 trillion by end of 2026…as the AI chapter takes hold at TSLA🍿🔥🏆🐂 @elonmusk— Dan Ives (@DivesTech) December 15, 2025</blockquote>
</div><figcaption>See Also: Trump Says US Has Taken In More Than $18 Trillion In Investments Thanks To Tariffs: ‘They’re Coming From Germany, They’re Coming From Japan…’</figcaption></figure>



<h2>Tesla Pushes Ahead On Driverless Tech, Robotics</h2>



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, &#34;Testing is underway with no occupants in the car.&#34;



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.



<h2>Valuation Concerns Persist</h2>



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. 



<figure class="wp-block-image aligncenter size-full"></figure>



Benzinga’s Edge Rankings place Tesla in the 67th percentile for quality and the 53rd percentile for growth, reflecting its average performance in both areas. Check the detailed report here. 



Price Target: On a year-to-date basis, Tesla stock climbed 21.01% as per data from Benzinga Pro. On Friday, it rose 2.71% to close at $458.96.



READ NEXT:



<ul>
<li>Tesla Board Members Rake In Over $3 Billion In Stock Awards Despite 2021 Pay Freeze: Report</li>
</ul>



Image via Imagn 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

TSLA

TSDD

TSLL

TSLQ

09366

07766

07366

TSLR

Dan Ives of Wedbush Securities predicts Tesla could reach a $2 trillion market cap by 2026, with a bullish scenario of $3 trillion, driven by advancements in AI and robotics. Despite valuation concerns, Tesla is progressing in autonomous driving, with CEO Elon Musk aiming for driverless Robotaxi services. Tesla's stock rose 21.01% year-to-date, closing at $458.96.

- Dan Ives of Wedbush Securities predicts a "monster year" for Tesla, forecasting a potential market cap of $2 trillion by the end of 2026, with a bullish scenario of $3 trillion.  
- This optimism is linked to Tesla's advancements in autonomous driving and robotics, as CEO Elon Musk emphasizes the importance of scaling Full Self-Driving technology and the Optimus robot.  
- However, concerns about Tesla's valuation persist, with a Morgan Stanley analyst downgrading the stock due to stretched valuation metrics and anticipated headwinds in EV sales through 2026.

benzinga_article

Tesla

GraniteShares 2x Short TSLA Daily ETF

Direxion Daily TSLA Bull 2X Shares

AXS TSLA Bear Daily ETF

XI2CSOPTSLA-U

XL2CSOPTSLA

XI2CSOPTSLA

GraniteShares 2x Long TSLA Daily ETF

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