Tesla (TSLA) shares have rallied aggressively in the build up to the EV maker’s scheduled launch of robotaxi services next month in Austin.  

Shares of the electric vehicle behemoth are already up more than 50% versus their year-to-date low – but a senior Wedbush analyst says it may be a drop in the bucket compared to where TSLA is headed eventually. 

Dan Ives maintained his “Buy” rating on the EV stock on Friday, May 23, nothing the “gold age of autonomous is now on the doorstep for Tesla.”

Wedbush Says Tesla Stock Is Headed for $500

Ives dubbed Tesla’s venture into robotaxi services the “next chapter of growth for Musk & Co.” in his research note on Friday. 

Together with the company’s work on humanoid robots, this new revenue stream could push TSLA shares up further to a whopping $500 over the next 12 months, he added. 

Wedbush’s price target indicates potential for another 45% upside in the EV stock. The firm’s bull case even sees Tesla hitting a market of $2 trillion by the end of next year.  

Ives’ bullish call arrives only a day after BYD (BYDDY) was said to have overtaken Tesla as the best-selling EV brand in Europe. 

TSLA Shares Dubbed the Most Undervalued AI Play

Tesla has been grappling with a demand slowdown in recent months that resulted in a 20% year-over-year decline in its automotive revenue in Q1. 

Still, Wedbush remains unfazed since “we have never viewed Tesla simply as a car company.” The Austin-headquartered firm is more of a disruptive tech name instead, Ives argued in his latest report. 

The analyst recommends investing in TSLA as it’s a platform where self-driving comes together with artificial intelligence. In fact, Tesla stock is currently “the most undervalued AI play in the market,” he concluded. 

According to Dan Ives, robotaxis and artificial intelligence are worth $1 trillion at least for the EV maker. 

Other Wall Street Firms Recommend Caution on Tesla

Investors should note, however, that Wedbush is among Wall Street firms that are overly bullish on TSLA stock. 

The consensus rating on Tesla currently sits at “Hold” only with the mean target of about $288 indicating potential downside of about 15% from here.