Wedbush senior analyst Dan Ives says Waymo isn’t the best name for exposure to the global race towards autonomous vehicles.
Despite the buzz around Alphabet’s self-driving unit, Ives argues that Tesla Inc (NASDAQ: TSLA) scale, engineering depth, and Musk’s renewed focus make it the better long-term investment than Waymo.
TSLA chief executive Elon Musk stepped down from his role in the Trump administration last week, which Wedbush’s Ives dubbed a “pop-the-champagne moment for Tesla investors” in a recent CNBC interview.
“Biggest asset for Tesla is Musk, and this ends what was really a dark chapter for TSLA investors,” he added.
Tesla shares are currently up more than 50% versus their year-to-date low.
Why does Wedbush prefer Tesla over Waymo?
While Waymo has made headlines for running self-driving robotaxis in select US cities, Ives points out that the program is small and far from scalable.
“Waymo essentially operates in four cities … the question is: can it scale?”
For Ives, that’s where Tesla has the upper hand.
With vertically integrated manufacturing and real-time data gathered from its global fleet, Tesla is building a foundation to deploy autonomous features at scale, not just in test markets.
China’s EV sector is also making impressive strides, with automakers like BYD producing low-cost vehicles packed with tech.
But Ives argues that Tesla’s global positioning, software stack, and talent pool still place it ahead.
“When it comes to scale, I view TSLA as unmatched relative to engineering talent and the ability to scale. I believe we’re sitting here a year from now and Cybercabs are going to be in 10, 15, 20 cities,” the Wedbush analyst argued.
Wedbush sees TSLA as more than an automaker only
Wedbush maintains an “Outperform” rating on Tesla stock, with a price target of $500, which reflects their view that Tesla is more than just an automaker – it’s a disruptive AI and robotics company in the making.
“I think we’re going to look at the next year or two as the golden era for Tesla,” Ives said.
He sees the upcoming Investor Day on June 12 in Austin as a catalyst, where more details on Tesla’s full self-driving ambitions and humanoid robots are expected to be shared.
Despite growing global competition, Ives believes Tesla’s focus on mass-market scaling, combined with Musk’s return to operational leadership, positions the company to dominate.
“Leaders lead,” he said, adding “the biggest chapter of Tesla’s growth story is ahead of us.”
Other Wall Street analysts, however, are nowhere near as bullish on Tesla shares.
The consensus rating on the EV stock currently sits at “hold” only with the mean price target of about $309.
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