Ark Invest, which has always been a strong supporter of Tesla, released its expected value in 2029 - $2,600 per share. Musk’s response: Very challenging, but achievable!
Tesla estimated price in 2029: $2,600
According to the latest report released by Ark, its expected value for Tesla in 2029 is $2,600 per share, with a bear market scenario of $2,000 and a bull market scenario of up to $3,100.
Robotaxi will significantly contribute to revenue
ARK predicts that by 2029, nearly 90% of Tesla’s enterprise value and profits will be attributed to the Robotaxi business. At the same time, electric vehicles may account for about a quarter of total sales and 10% of Tesla’s profit potential. ,
ARK believes Tesla will launch Robotaxi within the next two years, which will significantly contribute to Tesla's revenue and profits, so it expects Tesla's stock price to reach $2,600 by 2029.
If the Robotaxi factor is removed from the model, the target price will drop to $350, but Ark believes that the chance is slim. If it does happen, Tesla may first launch a vertically integrated ride-hailing service for strategic reasons.
The impact of Optimus robots is not yet significant
Ark assumes that Optimus has minimal impact on the target. Over the next decade, Tesla will become a leading manufacturer and service provider of mobile robots in physical space as it will have the opportunity to leverage the vast amount of knowledge gained from Robotaxi and its in-house inference chips, training computation and manufacturing.
Tesla expects Optimus to have useful factory tasks completed by the end of the year. Assuming Optimus can absorb 10-20% of Tesla's labor time and have productivity equal to or twice that of humans, Optimus could save Tesla $3-4 billion in 2029, or 1-2% of manufacturing costs.
Tesla’s stock price has fallen by 30% this year, but Ark continues to increase its investment
According to Stockcircle, ARK Invest made its first purchase of Tesla stock in the fourth quarter of 2016. A total of 5.18 million Tesla shares worth $884 million have been purchased so far. The investment cost was $474 million and the return on investment was 86%.
Although Tesla's stock price has performed poorly recently, while other technology giants have surged and continued to hit new highs, Tesla has fallen by 30% so far this year, but ARK Invest still increased its holdings by 36.2% in the first quarter of 2024 (an increase of 1.38 million stocks), showing that they are still very optimistic about Tesla’s fundamentals.
This article Ark calls for Tesla to be sold at US$2,600 in 2029, Musk: It’s challenging but achievable! First appeared in Chain News ABMedia.
