12:13 PM EDT, 06/11/2025 (MT Newswires) -- Elon Musk backing off from his verbal spat with President Donald Trump is a positive for Tesla (TSLA) when the company is about to launch its highly anticipated Robotaxi in Austin, Texas, on June 22, Wedbush said Wednesday.

Musk said on X early Wednesday that "I regret some of my posts about President Trump last week, They went too far."

Wedbush said the back and forth between Musk and Trump was taking a toll on Tesla shares, with investors worrying that "Trump in revenge mode will make it more difficult for an autonomous future with Tesla front and center."

Wedbush said it believes the vast majority of Tesla valuation upside is locked in with the success of its autonomous vision.

The investment firm estimates the artificial intelligence and autonomous opportunity is worth at least $1 trillion alone for Tesla. In a bull case scenario, the company could reach a $2 trillion market cap by the end of 2026, Wedbush said.

Despite the beef with Musk, key initiatives, including approval for autonomous cabs, are expected to get fast tracked under Trump's White House, Wedbush said.

Price: 330.04, Change: +3.95, Percent Change: +1.21