Cathie Wood’s Ark Invest has set a price target of $2,600 for Tesla (NASDAQ: TSLA) by 2029. This target is based on a Monte Carlo simulation that suggests a 25% chance the stock could fall to $2,000 or less and a 25% chance it could rise to $3,100 or more. Currently, Tesla’s stock price is approximately $320.
Ark’s analysis indicates that by 2029, 88% of Tesla’s enterprise value is expected to come from its robotaxi business, with only 9% attributed to electric vehicle sales. Tesla has not yet begun volume production of its dedicated robotaxi, the Cybercab, facing various regulatory and safety challenges.
Investors are cautioned that the success of Tesla’s stock heavily relies on the future of its robotaxi service, which is still unproven, making it a speculative investment.
