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 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.
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 with a 11.09% weight. TSLA shares are second in ARK Autonomous Tech with a 10.76% weight. Meanwhile, Tesla stock is fourth in the ARK Next Generation Internet with a 7.93% weight.
Cathie Wood: Tesla Stock Performance
TSLA shares jumped 3.9% to 177.29 during market action on Wednesday. Tesla stock dropped 1.8% to 170.66 on Tuesday, trading below its 50-day moving average for the first time since May 13.
Last week, Tesla stock fell 0.3% to 177.48 and shares are now down 4.5% in June.
TSLA declined 2.8% in May and have sunk around 30% so far this year.
However, Tesla has rallied since reporting first-quarter earnings and revenue on April 23, finding support just above its 50-day moving average, according to MarketSurge analysis. On April 22, Tesla stock hit a 52-week low of 138.80.
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.
Tesla stock ranks seventh in the 35-member IBD Auto Manufacturers industry group. The stock has a weak 44 Composite Rating out of a best-possible 99. Shares have a 14 Relative Strength Rating and a 62 EPS Rating.
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