Cathie Wood, head of ARK Invest, is making a bold prediction about Tesla’s future. She believes Tesla (TSLA) stock could skyrocket by a whopping 744% in the next five years, reaching a price of $2,600 per share by 2030.
Robo-Taxis are Key
Wood’s prediction hinges on Tesla’s robotaxi platform. She thinks this autonomous vehicle service will be the main driver of Tesla’s value, far surpassing the revenue from selling electric cars themselves. She explained that selling cars is a one-time deal, while a robotaxi network generates ongoing income.
Elon Musk’s Vision
Tesla CEO Elon Musk has also talked about the robotaxi plan. He envisions a system where Tesla owners can rent out their self-driving cars when they’re not using them, similar to Airbnb. Musk expects Tesla’s own fleet of robotaxis to be operating unsupervised in multiple cities by the end of the year, with owner participation following shortly after.
Two Revenue Streams
Wood outlined two ways Tesla could make money from this: a subscription service for the robotaxi network, or a pay-per-use option for those who don’t need constant access.
Current Price and Disclaimer
Currently, TSLA is trading around $308 per share. It’s important to remember that these are predictions, and investing in the stock market always involves risk. Do your own research before making any investment decisions.
