There are two kinds of individuals in the self-driving race, those who are still gawking at robotaxi demos in trial cities and those who are strapping themselves in for Tesla’s highway domination. As Waymo continues to edge along with caution and city approvals, Elon Musk is looking toward a future where a vehicle doesn’t merely drive itself, it basically operates the software from the dashboard.

As the autonomous vehicle competition heats up around the world, investors are always in search of the most exciting companies to invest in. While Alphabet’s self-driving division, Waymo, keeps making news with its robotaxi tests, Wedbush senior analyst Dan Ives considers Tesla the true long-term value player. From scalability to engineering strength, Ives contends that Tesla’s advantage extends far beyond flashy demonstrations and into the arena of sustainable disruption.

Waymo’s Limited Deployment

Waymo has drawn attention to itself for rolling out robotaxis independently in very few selected cities of the U.S. Dan Ives identifies one critical limitation, which is its scalability. He said,

“Waymo essentially operates in four cities … the question is: can it scale?”

Through years of development and research under Alphabet’s broad umbrella, Waymo still has not seen past niche deployments. It has a limited reach, which questions whether the company can transition from pilot to operational at scale. Though their technology is great, the business model and market traction are up in the air.

Tesla’s Scale, Data, and High-Depth Engineering Talent

Tesla, on the other hand, is not starting with a clean sheet on its autonomous play. It has a worldwide fleet of millions of vehicles on the road, all providing real-time feedback back into its network. This closed loop enables Tesla to iterate on its Full Self-Driving (FSD) system on an ongoing basis, based on real-world conditions, not test rigs.

Dan Ives attributes this system of learning in the real world as a major differentiator. He said,

“When it comes to scale, I view TSLA as unmatched relative to engineering talent and the ability to scale. I believe we’re sitting here a year from now and Cybercabs are going to be in 10, 15, 20 cities”.

Tesla’s vertically integrated manufacturing, in-house chip design, and internal software provide it with a multi-faceted superiority over industry rivals still dependent on external suppliers and bounded tests.

Turning Point in Tesla’s Path

Tesla shareholders welcomed Elon Musk’s recent withdrawal from his political advisory position in the Trump campaign as a pivotal moment. The move was declared by Ives as a “pop-the-champagne moment for Tesla investors,” indicating that Musk has his full attention on the company once again.

Musk’s return to Tesla’s operations is likely to speed up critical projects, such as the expansion of autonomous driving capabilities and the rollout of “Cybercabs,” a name given to Tesla’s future fleet of robotaxis. As per Ives, in the next year, these self-driving cabs might be in use in “10, 15, 20 cities.”

$500 Price Target for Tesla

Wedbush is still very bullish about Tesla, giving it an “Outperform” rating with a brave price target of $500. It is much higher than the current consensus of EV stock, which currently sits at “hold” with a price target of  $309. The company views Tesla not just as an automaker, but as a revolutionary AI and robotics giant in the making.

Ives said,

“I think we’re going to look at the next year or two as the golden era for Tesla.”

The June 12 Investor Day in Austin is likely to provide more insight into Tesla’s vision for FSD and its humanoid robot aspirations, which are two of the areas most likely to reshape the company’s image and market profile.

Global Competition

While Chinese rivals such as BYD keep closing the gap with low-cost vehicles and technology-enabled features, Ives asserts that Tesla’s global size, software capabilities, and brand value provide it with a superior advantage. Tesla’s capacity to innovate at scale and deliver across the globe positions it in a class of its own. Its vehicles aren’t mere cars, they are intelligent, upgradable platforms that become better over time, it is an advantage no incumbent carmaker or new player has so far equaled.

Wagering on the Autonomous Future

For investors willing to put their money on the autonomous revolution, Waymo’s narrow market penetration and absence of commercial scalability restraint its potential. Tesla, on the other hand, is already setting the infrastructure in place for mass-market rollout of self-driving technology, supported by information and manufacturing capabilities. Dan Ives said,

“Leaders lead, the biggest chapter of Tesla’s growth story is ahead of us. Biggest asset for Tesla is Musk, and this ends what was really a dark chapter for TSLA investors.”

In the intensely competitive surge towards autonomy, Waymo may be the refined academic, with glossy theories, pilot projects, and an exemplary safety record, but Tesla is the street smart troublemaker making headlines and devouring market share in real time. Yes, Waymo may pass the test track, but Tesla is already making its way through the gritty corners of reality across the globe. With tens of millions of rolling data centers powering its neural net and Musk once again focusing on his technology, Tesla isn’t simply reaching for the future, it’s building it at scale. As the world of EVs travels toward full self-driving capability, for those who want to get in on the next wave of innovation in mobility, Tesla could be the ticket.