Tesla (TSLA) stock is down more than 30% so far in 2024, but Ark Invest CEO Cathie Wood thinks "now is not the time to run for the hills." In fact, Ark has been buying the stock and thinks it could rise to $2,000 per share in the next five years, representing an increase of more than 1,000% from today's levels.
"Autos, in the future, will be electric," Wood said in a recent interview with CNBC. "We believe in five years, 75% to 85% of all sales will be electric."
And Tesla is not just an auto company, Wood told CNBC. It epitomizes three technologies – robotics, energy storage and artificial intelligence.
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When CNBC asked what Tesla would be worth in five years, Wood confidently said $2,000 per share.
The $2,000 per share figure is not new, either. In April 2023, Ark Invest published its valuation model for Tesla with the same price target and the expectation of reaching it by 2027. It also revealed a "bull case" target of $2,500 per share, which had a 25% probability, and a "bear case" target of $1,400 per share, also with a 25% probability.
Robotaxis are key to Tesla stock's growth
The key driver of Ark's investment thesis is Tesla's prospective robotaxi business, which it thinks could represent 44% of the $1.02 trillion in revenue, 64% of the $354 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) and 67% of the $6.1 trillion enterprise value it expects Tesla to reach in 2027.
Ark's price targets rely heavily on the anticipated launch of the robotaxi business, "with late 2024 as the weighted average of all cases," it said.
"With a robotaxi platform, Tesla should be able to generate earnings from both the vehicle sale and a recurring ride-hail revenue stream, which ARK believes could generate software-like margins," Ark said in its valuation model. "As Elon Musk has phrased it, autonomous ride-hail ‘probably will be the biggest asset value increase in history.'"
If the robotaxi business does not launch in the near term, Ark may have to revise its target date for reaching the $2,000 per share price target.
As a point of comparison, the average target price of the 47 analysts covering Tesla stock that are tracked by S&P Global Market Intelligence is $196.64.
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Tesla's price per share could surge to as high as $2,600 by 2029, ARK Investment Management said Wednesday. Citing data from their updated open-source model, Ark said this projection reflects the expected value, with the bull case suggesting a potential price of $3,100 and the bear case estimating $2,000 per share.
What is Cathie Wood's prediction for Tesla stock? ›
When Wood's ARK Invest fund issued its forecast for Tesla, the stock was trading at about $180 per share. While Wood expects Tesla stock to be worth $2,600 by 2029, Wood's team even suggests that in a more optimistic scenario, the stock could surge to $3,100.
What is the prediction for Tesla stock over 5 years? ›
Cathie Wood's ARK Invest predicts Tesla stock will surge 1,350% over the next five years. Elon Musk says it's an 'extremely challenging, but achievable' target. Cathie Wood, CEO of ARK Investment Management, delivers a keynote speech at the ARK Innovation Center in St. Petersburg, in February 2024.
How much will Tesla stock be worth in 2040? ›
Tesla stock forecast 2040
According to reputable sources, Tesla's stock price is predicted to reach between $13,680 and $15,660 by 2040. This forecast is based on the assumption that the company will continue to innovate and expand its market share.
What will Tesla stock be worth in 2025? ›
The long-term forecasts for Tesla's stock value in 2025 show a wide range of analyst expectations, between a low of $115 and a high of $1,063 per share. These projections account for various factors, including Tesla's market performance, EBITDA margins, and the expansion of the electric vehicle market.
What if you invested $1,000 in Tesla 5 years ago? ›
If You'd Invested $1,000 in Tesla 5 Years Ago, Here's How Much You'd Have Today. I won't keep you in suspense. The answer is: $8,862.79. That's how much money you'd have today if you had invested $1,000 in Tesla (NASDAQ: TSLA) stock five years ago -- and it's a pretty nice return, right?
Is Tesla stock going to skyrocket? ›
Wall Street consensus also has 2024 Tesla earnings firmly below last year's level. That signals another year of earnings declines for this growth stock. Analysts currently expect Tesla earnings per share of just $2.24 in 2024, according to FactSet. That would be a 28% decline vs. $3.12 in 2023.
What will Tesla stock be worth in 2030? ›
He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.
What will Tesla stock be worth in 2027? ›
Tesla Stock Price Prediction 2027
End-of-Year 2027: Most Bullish Projection: 2000 (ARK Invest) Most Bearish Projection: 44.57 (WalletInvestor)
Is Tesla a good stock to buy in 2024? ›
Tesla has the potential to be a top growth stock to own not just in the second half of 2024 but in the long run as well. There is, however, always going to be some risk with the stock, as Tesla's financial results don't always match up to the hype surrounding its business. But it may be a risk worth taking.
Tesla has a consensus rating of Hold which is based on 12 buy ratings, 16 hold ratings and 8 sell ratings. What is Tesla's price target? The average price target for Tesla is $208.98. This is based on 36 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Is Tesla stock undervalued? ›
Fair Value Estimate for Tesla Stock
With its 4-star rating, we believe Tesla's stock is undervalued compared with our long-term fair value estimate, which we've raised to $200 from $195 after updating our model following the firm's first-quarter earnings.
How much $10 000 invested in Tesla stock 10 years ago is worth now? ›
If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That works out to a more than 70% average annual return. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376.
How much will my Tesla be worth in 3 years? ›
Tesla Model 3 Depreciation
| Years Old | Depreciation | Residual Value |
|---|
| 1 | $17,205 | 64.36% |
| 2 | $18,286 | 62.12% |
| 3 | $21,680 | 55.09% |
| 4 | $24,118 | 50.04% |
6 more rowsStill, the company's share price can be expected to reach close to $600 by the end of 2034. Hence, based on current estimates, the chances of Nvidia's share price crossing $1,000 in the next decade appear slim.
How much will Tesla stock be worth in 10 years? ›
How Much Will Tesla Stock Be Worth in 10 Years? StockScan projects Tesla's stock could exceed $3,600 by 2035. This long-term outlook considers potential growth in production, technological advancements, and market expansion, though long-term predictions are inherently speculative.
What is the future price of Tesla stock? ›
Average Price Target
Based on 31 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $211.46 with a high forecast of $310.00 and a low forecast of $85.00. The average price target represents a 5.73% change from the last price of $200.00.
