Analysts from ARK Invest, investment management company established Katherine Wood in 2014, they’re convinced: Shares of Tesla, Elon Musk’s electric car giant, will soar to $2,600 by 2029 thanks to robotaxis. A target price that suggests upside potential of 1,350% from current values ​​(around $170).
The title can go as high as $3,100
In a note published yesterday, ARK analysts suggested that a bullish valuation (25% chance of realization) would put the stock at $3,100 per share. A bearish estimate instead places the stock at $2,000 per share, again with a 25% probability.
Born as an electric car maker, Tesla is trying to establish itself as more of a technology company than a car maker. For this reason, ARK claims that only a quarter of Tesla’s sales and about 10% of its profit potential in 2029 will come from the EV sector. 90% of the cost will come from the robotaxi business.
It must be said that Tesla has yet to launch a robotaxi business. But ARK says a launch is guaranteed soon.
“We believe that Tesla will launch a robo-taxi service within the next two years and that the likelihood that Tesla will not be able to launch a robo-taxi service within five years is minimal,” the analysts explained, noting that Tesla has said it will introduce its prototype during the August 8 event.
Without a robotaxi, the rebound is much smaller
What if Tesla is unable to expand its robotaxi network in time due to difficulties in obtaining regulatory approval or for some other reason? In this case, the chances of an increase will be much more limited.
ARK experts say that if Tesla’s robotaxi network isn’t up and running by 2029, the target price will be around $350. At the same time, it is possible that Tesla could launch a car transport service similar to Uber and Lyft.