Tesla’s run has just started, says ARK Invest CEO — $7,000 in 2024
Talking to Bloomberg, ARK Invest CEO Catherine Wood said that the surge in Tesla (TSLA) stock has just begun — the company also released a detailed report last week on how Tesla is expected to reach a $7,000 per share price in the next five years, of-course Robotaxi and FSD plan realizations are the big factors are a to play a big part in this transition.
When asked by the host about the parity between the number of cars Tesla produces per year vs. the market cap it has currently (more than Ford & GM combined), the CEO of the investment firm replied:
Well we just published a report with our long term forecast, the numbers have gone up dramatically, today the stock is roughly $640 up from $580 yesterday, and yet, and yet, we think it’s incredibly undervalued, and the reason for that there are two assumptions that have changed in the last couple of reports, one: our bull case for TSLA in our role model, it would lose 1/3 of the market share it had in 2018 17% global market share including China, that it would lose as the Tesla killers came into market, Audi, Porsche Taycan, and Jaguar, well guess what? It’s share increased last year to 18%.
And if we’re right, if we are right, ‘This stock has only begun‘.
Tesla stock which was already going so high is hitting new milestones almost every week now, one of the recent reasons for stock jump were Tesla’s Q4’2019 earnings report and call that stated how the automaker was able to start Model Y production way ahead of time and is expecting to start deliveries by Q1′ 2020.
According to Catherine, the traditional car companies are failing miserably to produce a reasonably priced car with a reasonable range — the reason for this failure is choosing lithium-ion pouch cells that are more costly than Tesla’s cylindrical cells, traditional automakers, therefore, are not able to sell their EVs at a profit.
ARK Invest’s research shows that within the next 18 months or two years, the price of an electric vehicle (like-for-like categories) is going to drop below the internal combustion engine or gas-powered cars for the first time ever and it would continue to fall. The investment management firm estimates that after five years from now one TSLA share will be worth $7,000, the following chart shows the roadmap to this goal.
With 14.2 billion miles of real-world driving data from Tesla’s worldwide fleet of cars has almost no competition in the farthest of sights, the other company that has the most recorded miles is Waymo with only 20 million miles of real-world self-driving data, that is a comparison between an ant and a mammoth.
According to one of Tesla CEO Elon Musk’s latest tweets, the Tesla fleet is soon going to hit over a million vehicles worldwide, with each and every vehicle sending driving conditions data back to Tesla’s neural network, the amount of data Tesla will be able to gather is going to grow exponentially.
Tesla will soon have over a million connected vehicles worldwide with sensors & compute needed for full self-driving, which is orders of magnitude more than everyone else combined, giving you the best possible dataset to work with— Elon Musk (@elonmusk) February 2, 2020