Wall Street Lunch: Tesla To The Moon

Wall Street Breakfast5.74M FollowersSubscribe5ShareSaveComments(2)SummaryTesla (TSLA) is poised for a breakout year, driven by accelerated robotaxi rollouts and Cybercab production starting as early as April or May.Wedbush values TSLA's AI and autonomy initiatives at $1T, projecting a market cap surpassing $2T in the next year, with a bull case of $3T by 2026.ServiceNow (NOW) faces pressure from a potential $7B Armis acquisition and a downgrade to Underweight, while Micron (MU) receives a bullish price target increase to $300.Netflix (NFLX) seeks to assuage worries about theatrical releases if it takes over Warner. Anski/iStock Editorial via Getty Images Listen below or on the go on Apple Podcasts and Spotify Wedbush says Tesla market cap will hit $2T next year. (0:15) ServiceNow slumps on deal report. (1:11) Netflix leadership seeks to assuage deal worries. (2:18) The following is an abridged transcript: Wedbush is calling for a monster year ahead for Tesla (TSLA) as the debate heats up over how quickly the robotaxi era takes shape following a successful initial launch in Austin.

Analyst Dan Ives says Tesla is set to accelerate robotaxi rollouts across the U.S., with Cybercab volume production expected to begin in April or May. He argues Tesla is taking major steps along its AI and autonomy roadmap, positioning robotics and self-driving as core growth engines heading into 2026. Ives reiterated his view that AI and autonomy alone are worth at least $1T for Outperform-rated Tesla, adding that key initiatives could be fast-tracked over the next three to six months as regulatory hurdles around full self-driving ease. Wedbush sees Tesla’s market cap surpassing $2T in the coming year — and in a bull case, reaching $3T by the end of 2026 as autonomous and robotics production scales. Ives also estimates Tesla could control about 70% of the global autonomous market over the next decade. Among active stocks, ServiceNow (NOW) is under pressure after reports it’s in advanced talks to acquire Armis, the U.S.-Israeli cybersecurity firm that had been preparing for a potential IPO in 2026, for around $7B. Adding to the weakness, KeyBanc downgraded ServiceNow to Underweight, citing what analyst Jackson Ader called “worrying trends” in IT back-office employment data. Ader also cut Adobe (ADBE) to Underweight with a $310 price target, saying the trade-off between growth and margins could make sustained outperformance difficult. On the bullish side, Wedbush raised its price target on Micron (MU) to $300 from $220 ahead of earnings, maintaining an Outperform rating.

Analyst Matt Bryson said estimates have been lifted to just above the high end of Micron’s guidance — and even that may prove conservative. Looking to the economy, the Empire State Manufacturing Index slipped into contraction in December, falling to -3.9 from 18.7 in November and missing the 10.0 consensus. New orders were steady, while shipments dipped modestly. Pantheon Macro’s Oliver Allen says the expected employment component remains weak, suggesting the sector will continue shedding jobs. He adds that slow growth in manufacturing output looks more likely than a boom from here. In other news of note, Netflix (NFLX) co-CEOs Greg Peters and Ted Sarandos say they’re committed to theatrical releases for Warner Bros. films, pushing back on concerns the studio would pivot to a streaming-first model. According to Bloomberg, the executives made their case in a letter to employees as they respond to a rival bid from Paramount Skydance (PSKY) and address industry worries echoing through Hollywood about job losses and the future of theaters. They framed the deal as growth-focused — strengthening an iconic studio, supporting jobs, and ensuring a healthy future for film and TV production. While Netflix hasn’t prioritized theatrical releases historically, Peters and Sarandos said that will change once the deal closes, adding there would be no overlap or studio closures. Netflix has offered a mix of cash and stock valuing the Warner Bros. assets at $72B and says it’s confident the deal will clear. Paramount is pursuing a competing $108.4B offer including debt. Netflix executives said the rival bid was expected, but emphasized they already have a solid agreement in place. And in the Wall Street Research Corner, yclicals have rallied sharply, beating defensives for a record 14 straight sessions before easing back, according to Goldman Sachs. But Goldman says markets are still pricing only about 2.0% real GDP growth in 2026, below its 2.5% forecast. Within cyclicals, consumer and nonresidential construction stocks look underpriced, with ground transportation and building products flagged as potential catch-up plays. Names on the screen include Steel Dynamics (STLD), Union Pacific (UNP), Honeywell (HON), Analog Devices (ADI), and Stanley Black & Decker (SWK).This article was written byWall Street Breakfast5.74M FollowersSubscribeWall Street Breakfast, Seeking Alpha's flagship daily business newsletter, is a one-page summary that gives you a rapid overview of the day's key financial news. It is designed for easy readability on the site or by email (including mobile devices) and is published before 7:30 AM ET every market day.

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