Investing.com – Two investment firms raised their price targets on Tesla (NASDAQ:) shares, sending them up about 1% in premarket trading on Monday.

Wedbush analysts raised their price target from $400 to $515, representing a rise of more than 18% from Friday’s closing price. They believe the Trump administration will be “a complete game changer” for the automaker’s autonomous driving and AI story over the next four years.

The investment firm also presented a bull-case scenario in which Tesla shares could reach $650 by 2025.

Analysts led by Daniel Ives estimate that the AI ​​and autonomous capabilities “represent at least $1 trillion for Tesla alone.”

They believe these important initiatives are likely to be accelerated under a Trump administration, as the federal regulatory challenges Tesla has faced in recent years related to full self-driving (FSD) and autonomous technology are expected to ease significantly .

“We believe Tesla could reach a $2 trillion market cap by the end of 2025 as the company’s autonomous vision takes shape and there is very solid Tesla delivery demand that we expect from the core market of China,” analysts added.

Wedbush also noted that their price target does not include potential gains from Tesla’s Optimus project, which could add significant value.

Separately, analyst firm Truist Securities also adjusted its price target on Tesla, raising it from $238 to $360 following the company’s third-quarter performance.

The revision reflects a less cautious view of Tesla’s ability to generate positive cash flows, particularly given the prospect of adding a robotaxi service.

This new price target comes despite acknowledging that the recent rise in Tesla’s stock price is not primarily due to its third-quarter results or business outlook, but rather to CEO Elon Musk’s improved relationship with President-elect Trump.

Still, Truist maintained its hold rating on Tesla stock, citing “somewhat elevated risks as so much value is placed on AI and other companies that don’t have a marketable product today, let alone cash flow.”