{"id":48463,"date":"2023-04-28T09:03:36","date_gmt":"2023-04-28T13:03:36","guid":{"rendered":"https:\/\/autosector.com\/?p=48463"},"modified":"2023-04-28T09:03:36","modified_gmt":"2023-04-28T13:03:36","slug":"ark-predicts-tesla-share-price-2000-dollars-2027","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=48463","title":{"rendered":"ARK Predicts Tesla Stock To At Least $2,000 By 2027, But Why?"},"content":{"rendered":"

This article comes to us courtesy of\u00a0EVANNEX<\/a>, which makes and sells aftermarket Tesla accessories. The opinions expressed therein are not necessarily our own at\u00a0InsideEVs<\/a>, nor have we been paid by\u00a0EVANNEX\u00a0to publish these articles. We find the company’s perspective as an aftermarket supplier of Tesla accessories interesting and are happy to share its content free of charge. Enjoy!<\/em><\/p>\n

Posted on<\/span>\u00a0EVANNEX on April 28, 2023,\u00a0by<\/span>\u00a0Peter McGuthrie<\/p>\n

Cathie Wood, CEO of investment management firm ARK Invest, has long been bullish on Tesla<\/a>. Wood recently explained why she thinks\u00a0Tesla\u2019s stock<\/a>\u00a0could hit at least $2,000 by 2027, representing \u201cone of the most important investment opportunities of our lifetimes.\u201d<\/p>\n

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Above: A Tesla Model Y (Image:\u00a0Casey Murphy<\/a>\u00a0\/ EVANNEX).<\/em><\/p>\n

Wood expects Tesla\u2019s Full Self-Driving (FSD) beta to someday support a fleet of robotaxis, noting that the autonomy business would be a key driver of her $2,000 expected value estimate on the stock. The news, as shared by\u00a0ARK Invest<\/a>\u00a0and reported by\u00a0CNBC<\/em><\/a>, represents an increase from Wood\u2019s previous target of $1,500 by 2026, predicted last June.<\/p>\n

In the recent note, Wood and Ark Invest predicted that Tesla\u2019s robotaxis could bring in as much as $8 or $10 trillion of revenue by 2030. Tesla has remained one of Ark\u2019s largest holdings for the flagship Ark Innovation ETF (ARKK), with a total 9.4 percent weighting. Along with Ark\u2019s expected value of $2,000 per share, Wood also shared a bull case price target of $2,500, as well as a bear case price target of $1,400.<\/p>\n

The firm predicts that Tesla\u2019s robotaxi business will contribute 67 percent of its expected enterprise value, and 64 percent of its expected EBITDA in 2027. Additionally, it expects that Tesla\u2019s EVs will contribute 47 percent of revenues in the same year, albeit at \u201csubstantially lower margins than robotaxi revenue.\u201d<\/p>\n

With Tesla\u2019s current and future generations of vehicles all having FSD capabilities, the company is effectively scaling the potential for robotaxis with each car it sells. Even as the system develops and improves through increased FSD beta testers, the company will be deploying a large vehicle fleet, someday capable of autonomy.<\/p>\n

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