Cathie Wood, the founder and CEO of Ark Invest, is a well-known investor who has made a name for herself by predicting the rise of Tesla. In 2020, she predicted that Tesla's stock price would reach $4,000 per share by 2023. While that prediction has not come to fruition, Wood remains bullish on Tesla and believes that it could reach $2,000 per share by 2027.
Wood's valuation model for Tesla is based on the company's plans to launch a fleet of robotaxis. Robotaxis are self-driving cars that can be used for ride-hailing services. Wood believes that robotaxis have the potential to revolutionize the transportation industry, and she expects Tesla to be a major player in this market.
In order to reach her $2,000 price target, Wood is assuming that Tesla will generate $1.02 trillion in revenue by 2027, with 44% of that revenue coming from robotaxis. This would represent an annualized revenue growth rate of 68%. While this is a significant growth rate, it is not out of the realm of possibility for Tesla.
The company has already demonstrated its ability to grow rapidly, and it is now the world's leading electric vehicle maker.
In addition to its strong growth prospects, Tesla also has a number of other factors working in its favor. The company has a strong brand, a loyal customer base, and a leading position in the electric vehicle market. Tesla is also well-positioned to benefit from the growth of the autonomous vehicle market.
Of course, there are also some risks to consider. Tesla is a relatively young company, and it has not yet proven that it can successfully mass-produce robotaxis. The company is also facing increasing competition from other automakers, such as General Motors and Ford.
Overall, Cathie Wood's valuation model for Tesla is based on a number of factors that suggest that the company has the potential to reach $2,000 per share by 2027.
However, there are also some risks to consider, and investors should carefully weigh the potential rewards and risks before making an investment decision.
Here are some additional tips for investors who are considering investing in Tesla:
- Do your research. Make sure you understand the company's business model, its financial performance, and its competitive landscape.
- Diversify your portfolio. Don't put all your eggs in one basket. Consider investing in a variety of stocks, including some that are not directly related to the automotive industry.
- Be patient. Investing is a long-term game. Don't expect to get rich quick.
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