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Tesla’s (TSLA) stock closed Black Friday on a high note, rising 3.7% as broader markets saw gains. The stock’s rally brought it to nearly 40% growth for the year, and it now boasts a market capitalization of approximately $1.07 trillion. This puts Tesla among a select group of just eight companies with a market value surpassing the $1 trillion mark.

The surge was partly fueled by a positive outlook from Wedbush analyst Dan Ives, who reiterated his outperform rating on Tesla and set a $400 price target for the stock. This target is the highest among analysts tracked by Visible Alpha and significantly higher than the stock’s average target of around $255.1. Tesla’s stock closed the week at approximately $345.

Ives highlighted the potential impact of the incoming Trump administration, where Tesla CEO Elon Musk plays an active role. According to Ives, the administration is expected to pave the way for Tesla’s ambitious goals in self-driving vehicles and artificial intelligence (AI).

In particular, Ives emphasized that a formal federal framework for fully self-driving vehicles, which could become a key priority of the Transportation Department, would be a game-changer for Tesla. Such a move could significantly ease regulatory hurdles for self-driving technology in the U.S., providing a major boost to Tesla’s autonomous and AI initiatives, with a view toward 2025.

Ives estimates that this push could add up to $1 trillion to Tesla’s market value, and he believes the stock’s trajectory could lead the company to a $1.5 trillion to $2 trillion valuation over the next 12 to 18 months.

As Tesla continues to ride high on its stock performance and ambitious plans for the future, investors and analysts are closely watching its next moves in the rapidly evolving EV and AI sectors.