Daniel Ives Doubles Down on Tesla Stock, Calls TeraFab Push an ‘Emerging AI Powerhouse’

2026-03-26 01:12:17

Wedbush top analyst Daniel Ives remains highly optimistic about Tesla’s TSLA +0.76% ▲ future as an “AI powerhouse,” reiterating his Buy rating and Street-high price target of $600 (56.6% upside potential). This comes amid bold announcements from CEO Elon Musk highlighting Tesla’s push into advanced semiconductor manufacturing to fuel its AI-driven future.

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Ives is a five-star analyst on TipRanks, ranking #717 out of 12,128 analysts tracked. He has a 51% success rate and an average return per rating of 11.30%.

Roadmap to an AI-Driven Future

Musk announced that SpaceX and Tesla will build two advanced chip factories in Austin, Texas. The companies are prioritizing a Terafab facility, a massive semiconductor fabrication plant capable of producing enormous volumes of chips, to meet surging demand for the chip technology powering Tesla’s AI strategy.

One factory will supply chips for Tesla’s electric vehicles (EVs) and Optimus humanoid robots, while the other targets AI data centers, including those in space. Musk aims to generate 1 terawatt of capacity annually, roughly double the current U.S. production.

Ives highlighted that existing chip suppliers like Micron MU -3.40% ▼ , Taiwan Semiconductor TSM +1.31% ▲ , and Samsung Electronics SSNLF +54.05% ▲ will be unable to keep pace with Tesla’s AI needs.

Although the project timeline remains unclear, Ives views this as a game-changer. The move will accelerate Tesla’s AI roadmap, positioning the company as an AI powerhouse in the years ahead. Ives acknowledged that securing chip and memory supply is poised to be Tesla’s biggest bottleneck, and this initiative addresses it head-on. He also sees it as the first step toward a potential Tesla-SpaceX merger, likely in 2027, combining their strengths in AI, robotics, and space tech.

In related news, The Information reported that SpaceX is planning to file its initial public offering (IPO) prospectus with regulators as early as this week or next. The company could raise over $75 billion at a $1.25 trillion valuation, with a public listing targeted as soon as June.

Is Tesla a Good Buy at the Moment?

Not all analysts share Ives’ bullishness. On TipRanks, TSLA has a Hold consensus rating based on 13 Buys, 11 Holds, and seven Sell ratings. The average Tesla price target of $399.25 implies 4.2% upside potential from current levels. Year-to-date, TSLA shares have fallen 14.8%.

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