Subject: Re: O/t, what can Buffett be thinking as
Barron’s, “ Tesla’s stock has been on an incredible run, fueled by a postelection surge on high investor expectations for its business in 2025 and beyond. Wedbush analyst Dan Ives raised his price target to $515 a share, a Street high estimate, based on his view that the future of autonomous driving is coming faster than expected.

Ives expects President-elect Donald Trump to fast-track initiatives to make launching self-driving cars easier. Ives expects that the Trump White House will change the game for autonomous and artificial intelligence technology, estimating it is a $1 trillion opportunity for Tesla.
Tesla CEO Elon Musk aims to start the autonomous driving Cybercab platform in 2025, which could help drive its valuation to $2 trillion over the next year to 18 months, Ives said. Trump could clear the federal regulatory spiderweb that Tesla’s Full Self-Driving has faced.
Ives expects Tesla and iPhone maker Apple to get carve outs from Trump’s proposed tariffs on imports from China. He also expects Musk to have a very big role in the Trump White House and be heavily involved in China tariff discussions.
Tesla stock is up 73% since the Nov. 5 election, with shares trading at 130 times estimated 2025 earnings a share. The other trillion-dollar Magnificent Seven stocks—Apple, Alphabet, Amazon.com, Meta Platforms, Microsoft, and Nvidia—trade at an average of 29 times estimated 2025 earnings, as does chip maker Broadcom.
What’s Next: Tesla is planning a new model in 2025 that is expected to increase sales volumes to 2.3 million vehicles in 2025, as well as self-driving robotaxis. Robotaxis would need to earn $40 billion annually to square Tesla’s valuation with the rest of the Magnificent Seven stocks and Broadcom.

—Janet H. Cho and Al Root“