ARK Invest chief executive Cathie Wood believes the electric vehicle giant Tesla (TSLA) can hit an astronomical valuation by 2030.
In an interview on The Diary of a CEO YouTube channel, Wood says she sees TSLA surging 744% in half a decade, spurred by the firm’s robotaxi platform.
According to Wood, Tesla’s fleet of autonomous vehicles will become the centerpiece of the company’s business strategy in the coming years.
“Our prediction in five years is $2,600, and 90% of that valuation comes not from the electric vehicle, but from this robotaxi platform.
Because the electric car, if you think about it, is a one-shot sale. Sell and hope they come when they’re replacing their car.”
During the firm’s Q4 2024 earnings call, CEO Elon Musk explained how Tesla owners can generate income by renting out their full self-driving vehicles instead of just parking them when not in use.
“And I expect us to be operating unsupervised activity with our internal fleet in several cities by the end of the year. Then as probably next year when people are able to add or subtract their car from the fleet. So, kind of like Airbnb, where you can sort of add or subtract your house or your guestroom, add it to the Airbnb or don’t add it to the Airbnb inventory. If you’re traveling for a month, you can or whatever the case may be, you can let other people use your house.”
For now, Wood says that Tesla has two options to generate recurring revenue for both the company and the vehicle owner.
“You could subscribe to the network. It could be either or: subscription or à la carte if you don’t think you’re going to use it that much.”
As of Monday’s close, TSLA is worth $308 per share.
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