analysts of ARK Invest, investment management company established by Catherine Wood in 2014 They believe shares of Tesla, Elon Musk’s electric car giant, will soar to $2,600 by 2029 thanks to robotaxis. A price target that implies an upside potential of 1,350% from current values ​​(around $170).
The title can go up to $3,100
In a note published yesterday, ARK experts suggested that a bullish estimate (25% chance of realization) would put the stock at $3,100 per share. Instead, the undervalued estimate puts the stock at $2,000 per share, with a 25% chance of happening again.
Born as an electric car maker, Tesla is trying to establish itself more as a technology company than a car maker. That’s why ARK claims that in 2029, only a quarter of Tesla’s sales and about 10% of its revenue potential will come from the electric vehicle segment. 90% of the cost will come from its robotaxi business.
It must be said that Tesla has not yet started a robotaxi business. But ARK says a release is guaranteed soon.
“We believe that Tesla will launch a robotaxi service within the next two years, and that the probability that Tesla will not be able to launch a robotaxi service within five years is minimal,” the analysts explained, noting that Tesla stated , which will present its prototype at an event on August 8.
No robotaxis, much smaller jump
What if Tesla fails to expand its robotaxi network in time, due to difficulties in obtaining regulatory approval or otherwise? In that case, growth opportunities will definitely be more limited.
ARK experts say that if Tesla’s robotaxi network is not operational by 2029, the price target will be around $350. In this case, it is not excluded that Tesla can launch a car transport service similar to Uber and Lyft.
