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Tesla’s Stock Potential Linked to Autonomous Vehicle Goals
Analyst Stephen Gengaro from Stifel has projected that Tesla’s stock could surge by 25% as the company pivots towards autonomous vehicle (AV) initiatives. The AV market is expected to reach $1.4 trillion by 2040, with Tesla’s investments in this sector occurring amidst declining profits and increased competition.
Tesla’s third-quarter GAAP net income fell 37% to $1.4 billion, while operating expenses rose 50% to $3.4 billion. Despite this financial difficulty, the company plans to launch a robotaxi service in five new cities and aims to have 1,500 self-driving cars in operation by the end of this year.
Furthermore, analysts like Dan Ives of Wedbush believe that Tesla’s market capitalization could hit $2 trillion next year, bolstered by its AV pursuits. However, with high investments required and current financial challenges, investors are advised to be cautious before committing to Tesla’s stock.
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