Tesla's (TSLA) artificial intelligence valuation is beginning to get unlocked, with China set to be a source of strength for the firm, Wedbush said in a note Thursday.
"The march to an AI driven valuation for TSLA over the next 6-9 months has now begun," the report said.
Full Self-Driving technology and autonomous penetration of its installed base and the acceleration of the Cybercab project in the US will be the "golden goose" for Tesla, the note added.
Tesla could reach a $2 trillion valuation early 2026 in a bull case scenario and $3 trillion by the end of 2026 as full scale volume production begins, it said.
The report also said the China story is starting to improve "markedly" for Tesla, which should provide a tailwind into 2026.
Wedbush kept its outperform rating and $600 price target.
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