10:49 AM EDT, 10/08/2025 (MT Newswires) -- Tesla's (TSLA) new, cheaper Model 3 and Y electric vehicles still have a high price point relative to other EVs in the market, Wedbush said in a Tuesday research note.

"We are relatively disappointed with this launch as the price point is only $5,000 lower than prior Model 3s and Ys," analysts wrote, adding that the lower-cost models are a step towards attaining the 500,000 quarterly delivery run-rate, crucial for driving demand with the EV tax credit expiry.

Tesla's FSD 14.1 software update to enhance autonomous capabilities was driven by a 10-fold increase in its neural network parameters. The company plans to launch additional releases through 2025-end, according to the brokerage.

The path to an AI-driven valuation for the company over the next six to nine months has started with FSD and the autonomous penetration of its installed base, as well as the acceleration of Cybercab in the US, Wedbush stated.

Analysts said Tesla could reach a $2 trillion valuation in early 2026 in a bull case scenario and $3 trillion by 2026-end as full-scale volume production of the autonomous and robotics roadmap begins.

The brokerage said it reiterated its outperform rating on the stock and a price target of $600.

Price: 433.06, Change: -0.03, Percent Change: -0.01