Investment management firm ARK Invest and their CEO Cathie Wood continue to be high on the shares of electric vehicle maker Tesla. In a recent report, ARK Invest analysts predicted a 1,350% surge for Tesla’s stock in the next five years and believe it could reach $2,600 per share by 2029.
According to the report, ARK Invest believes that Tesla shares will surge thanks to the recently announced robot-taxi service, which is expected to contribute to the majority of Tesla’s earnings in the following years, thanks to higher margins.
“ARK estimates that nearly 90% of Tesla’s enterprise value and earnings will be attributed to the robotaxi business in 2029 … While unlikely, if we were to eliminate the possibility of a robotaxi network from our model, our price target would be ~$350,” the report adds.
ARK Invest has a bull price target on Tesla’s shares at $3,100, while the bear target is set at $2,000 per share.
This isn’t the first time that Wood and ARK Invest have lofty expectations for Tesla. Back in 2018, they predicted that the EV maker’s shares would end up being worth $4,000 by 2023. Their expectations were met even before that, as Tesla’s stock reached this point by early 2021, albeit in a split-adjusted equivalent.