Musk softens stance, investment bank Wedbush: Tesla's path to a $2 trillion market value has been opened
Tesla CEO Elon Musk admitted that his criticism of Trump was excessive, signaling reconciliation and driving Tesla's stock price to rise for three consecutive days. Investment bank Wedbush analyst Dan Ives pointed out that Musk's good relationship with Trump is crucial for Tesla's autonomous taxi plan and believes that successfully launching autonomous driving will be key for Tesla to achieve a market value of $2 trillion
The Zhitong Finance APP noted that whether due to personal wealth being severely impacted or Tesla (TSLA.US) needing to maintain a good relationship with the U.S. President, Tesla CEO Elon Musk has changed his attitude, admitting that his previous criticism of President Trump was "a bit excessive."
As Musk sends signals of reconciliation, Tesla's stock price has continued to rise for three consecutive days, increasing by 1.7% on Wednesday, and has rebounded 23% from the low on June 5. Investment bank Wedbush analyst Ives summarized, "Musk needs Trump, and Trump needs Musk."
He pointed out that this is crucial for Tesla's plan to launch its autonomous taxi in Austin on June 22, and it is also a key step in accelerating the AI revolution.
In a report to investors on Wednesday, Ives stated, "We believe that the vast majority of Tesla's future valuation increase potential depends on the success of this critical autonomous driving release in Austin."
Maintaining a good relationship with the Trump administration is key to promoting the implementation of a federal autonomous driving framework. Autonomous driving is essential for Tesla to achieve a $2 trillion valuation.
Ives added, "We believe that with the proliferation of FSD (Full Self-Driving) among Tesla's existing users and the accelerated promotion of Cybercab in the U.S., Tesla's journey towards a $2 trillion valuation has already begun, and this is the real 'golden goose.'"
