ARK Invest CEO Predicts Tesla Could Reach $2,600 by 2030
ARK Invest chief executive Cathie Wood has made a bold prediction about the future of electric vehicle giant Tesla (TSLA). In an interview on The Diary of a CEO YouTube channel, Wood shared her belief that Tesla could achieve an astronomical valuation by 2030, with the stock potentially surging 744% in just five years. This growth, according to Wood, will be driven by Tesla’s robotaxi platform.
Tesla’s Robotaxi Platform
Wood envisions Tesla’s fleet of autonomous vehicles becoming the centerpiece of the company’s business strategy in the coming years. She stated, “Our prediction in five years is $2,600, and 90% of that valuation comes not from the electric vehicle, but from this robotaxi platform.” Wood highlighted the potential of the robotaxi platform to generate recurring revenue for both Tesla and vehicle owners.
During Tesla’s Q4 2024 earnings call, CEO Elon Musk discussed how Tesla owners could earn income by renting out their full self-driving vehicles when not in use. Musk explained, “I expect us to be operating unsupervised activity with our internal fleet in several cities by the end of the year. Then as probably next year when people are able to add or subtract their car from the fleet.”
Generating Recurring Revenue
Wood outlined two options for generating recurring revenue through the robotaxi platform. She suggested that vehicle owners could subscribe to the network or opt for an à la carte payment model based on their usage. This approach aims to provide flexibility and maximize the utilization of autonomous vehicles.
Current Valuation
As of the latest market close, Tesla’s stock is valued at $308 per share. With Wood’s ambitious prediction for the stock price to reach $2,600 by 2030, investors and analysts are closely monitoring Tesla’s progress in the autonomous driving space.
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