Photographer: Alex Flynn / Bloomberg
Photographer: Alex Flynn / Bloomberg
Cathie Wood’s Ark Invest Management expects shares of Tesla Inc. arrive $ 3,000 in 2025, up from its current price of $ 655. At that price, the company would be worth nearly $ 3 trillion, depending on the number of shares outstanding.
Ark expects Tesla to have a 50 percent chance of achieving fully autonomous driving in five years, which could allow the company to quickly scale up the planned robotaxi service, according to a note Friday on Ark’s website.
He also added Tesla’s insurance business to its model, believing that the offer could be rolled out to more states in the coming years with better-than-average margins, thanks to the “very detailed driving data” the company collects. .
Wood has been one of Tesla’s most ardent supporters, having participated in its flagship fund with large holdings of the company. When Tesla shares saw a setback in February, she I bought more.
Under Ark’s new model, at best, Tesla could reach $ 4,000 per share by 2025 and, in the case of the bear, $ 1,500. The company expects Tesla unit sales to be between 5 and 10 million vehicles by 2025, leading to greater capital efficiency.
The $ 3,000 target is far away
It is not close
Analysts have speculated about the possibility of Tesla launching a robotaxi service at least since 2015, but there is little indication that its technology is about to make it possible any time soon. Tesla recently he told California authorities that human drivers will still have to constantly monitor a new city street feature within its “fully autonomous” feature set that is sold as part of the autopilot package.
As for the company’s insurance product, which began in August 2019 and is currently only available in California. The company includes vehicle insurance revenue within its “services and other” category, along with after-sales service, used vehicle sales and retail merchandise. Last year, all that combined business was ready 7% of total income.
Arka’s model does not incorporate the utility storage of utilities or Tesla’s solar business, nor did it take into account Tesla’s future price fluctuations. Bitcoin holdings.
Barron’s previously reported the price target.
– With the assistance of Craig Trudell
(Funded updates everywhere)