09:01 AM EDT, 06/20/2025 (MT Newswires) -- Tesla (TSLA) and its chief executive Elon Musk are building a foundation for autonomous growth "for years to come" with the launch of its Model Y Robotaxi service in Austin on Sunday, Wedbush Securities said in a note Friday.

"The AI future at Tesla is worth $1 trillion to the valuation alone over the next few years," Wedbush analysts said.

Wedbush said it sees Tesla rolling out and scaling its robotaxi service to about 25 US cities over the next year after debuting a "geofence" service around Austin with about 20 robotaxis. The firm said that in a bull case scenario, it believes the company could reach a market cap of $2 trillion by the end of 2026.

Wedbush maintained an outperform rating on the stock with a $500 price target.

Shares were 1.8% higher in recent premarket activity.