Cathie Wood and her Ark Invest firm updated its Tesla stock price target to 2,600 by 2029 on Wednesday, the day before the EV company holds its annual shareholder meeting with a key vote on Chief Executive Elon Musk’s $56 billion 2018 compensation package. TSLA shares advanced early Wednesday.
Ark Invest now has a Tesla stock price target of 2,600 per share in 2029. Its bear and bull cases suggesting TSLA could be valued between 2,000 and 3,100 per share in that year, according to the firm’s Tesla stock report release Wednesday.
Wood has long been bullish on Tesla’s autonomy push and robotaxi aims. Ark Invest estimates that around 90% of Tesla’s enterprise value and earnings will be attributed to the robotaxi business in 2029.
Meanwhile, the firm projects that electric vehicles could be about quarter of total sales and around 10% of Tesla’s earnings potential.
“We believe the robotaxi business will have much higher margins,” Ark Invest wrote Wednesday.
Without a robotaxi network and business, Ark Invest says its TSLA price target would be around $350 per share, according to the report.
“We remain confident that the service will launch within the next five years,” Ark Invest said.
Extremely challenging, but achievable https://t.co/Pwnbtg06fc
— Elon Musk (@elonmusk) June 12, 2024
In April 2023, Ark Invest projected a Tesla stock price of 2,000 by 2027, with Tesla’s robotaxi contributing 67% of expected enterprise value and 64% of expected EBITDA in 2027.
As of June 12, Tesla stock sits first in Wood’s ARK Innovation ETF (ARKK) with a 11.09% weight. TSLA shares are second in ARK Autonomous Tech (ARKQ) with a 10.76% weight. Meanwhile, Tesla stock is fourth in the ARK Next Generation Internet (ARKW) with a 7.93% weight.
The EV giant holds its annual shareholder meeting Thursday. Tesla will then report second-quarter earnings in mid-July. The company is expected to unveil its “robotaxi” on August 8.
JPMorgan analysts on Tuesday said they expected Tesla to show off a robotaxi prototype, but actual robotaxi revenues could be years away. That followed discussions with Tesla investor relations team.
