Cathie Wood of Ark Invest predicts a significant surge in Tesla’s share price, driven by its upcoming entry into the autonomous taxi platform sector.
Describing the autonomous taxi market as an “$8 trillion to $10 trillion global revenue opportunity,” Wood noted that Tesla could capture up to half of this market. She emphasized that Ark’s valuation of Tesla is largely based on its potential in autonomous driving, stating, “If we are right, the stock has miles to go,” she told Bloomberg.
Wood’s optimism comes despite a 43% drop in Tesla’s share price earlier this year due to a global slowdown in electric vehicle sales. A recent rebound has mitigated most losses, though Tesla still underperformed compared to other leading technology companies.
Tesla remains a significant holding in Ark’s Innovation ETF, despite the fund’s 9% decline this year. Wood, known for her bold predictions, has previously projected that Bitcoin could reach $1.48 million by 2030.
Wood described autonomous taxi networks as a “winner-takes-most” opportunity, where the most efficient provider will dominate the market. The network provider could claim 30% to 50% of revenue from fleet owners, resulting in substantial recurring revenue and profit margins exceeding 50%.
Tesla postponed its robotaxi unveiling (it’s said to be delayed 2 months) to allow for additional design changes. This delay caused an 8.4% drop in Tesla’s stock. Nonetheless, Wood remained optimistic, stating, “We’re probably getting closer to this robotaxi opportunity, not further away.” She added that Musk aims to present something more impressive by October.
Want to see more of our stories on Google?
P.S. — Buying a new Tesla? Click here to save $1,000 USD, while supporting independent news.
Help support us by shopping on Amazon here.
Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent media!
