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12/06/24
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Tesla Stock May Reach $2,600 By 2029 – ARK
On Wednesday, ARK Investment Management said Tesla’s share price may surge to as high as $2,600 by 2029.
Ark cited data from their open-source model and said the forecast reflects the expected value. The bear case estimated $2,000 per share and the bull case suggested a potential price of $3,100.
One of the main drivers behind this prediction is the expected launch of Tesla’s robotaxi service, which ARK estimates may account for close to 90% of Tesla’s earnings and enterprise value by 2029.
Ark added that electric vehicles may approximate about 10% of Tesla’s earnings potential and 25% of total sales, as they believed the robotaxi business would have much higher margins.
It added that Tesla would launch its robotaxi service within the next 2 years.
ARK highlighted that if the robotaxi opportunity was removed from the model, the price target for Tesla would fall significantly to about $350 per share.
The model also incorporates new assumptions about Tesla’s manufacturing growth rate and autonomous driving technology. ARK expects vehicle production will increase by 45% per year until the end of 2029, scaling from the current 1.8M units per year to between 6M and 16M units per year.
Other potential growth areas include the Optimus humanoid robot project and stationary energy storage.
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