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With Tesla’s (NASDAQ:TSLA) pivotal shareholder vote looming, Cathie Wood and Ark Invest have set their sights on a bold target: $2,600 per share by 2029. Despite the curious timing of this announcement ahead of Elon Musk’s $56 billion compensation vote, Wood’s faith in Tesla’s potential for disruption is steadfast.
Wood’s enthusiasm for Tesla’s trajectory is nothing if not consistent. Her belief in Tesla’s dominance in the realm of autonomous vehicles and robotaxis has been unwavering. In fact, Ark predicts that a staggering 90% of Tesla’s earnings will stem from its future robotaxi venture, outshining even its electric vehicle business.
“We believe the robotaxi business will have much higher margins,” Ark Invest stated confidently. “We remain firm in our belief that the service will be operational within the next five years.”
A striking stipulation accompanies Ark Invest’s ambitious target: the success of a robotaxi network. Without this crucial element, they estimate TSLA’s value would hover around $350 per share, doubling its current standing of $179.
Tesla continues to hold the crown in Wood’s ARK Innovation ETF (NYSEACRA:ARKK), dominating the portfolio with an 11.09% weight.
Revving Up: TSLA Stock Gains Momentum Ahead of Vote
Investors are clearly energized by Wood’s bullish outlook on TSLA, with the stock climbing approximately 4% at present. However, a potential about-turn may be in store as shareholders determine the fate of Musk’s 2018 compensation package today.
The prevailing sentiment suggests that Musk is unlikely to receive the green light for his substantial compensation package. In the face of Musk’s ultimatum to depart from the company, a rejection of the proposal during the vote could spell a sharp decline in Tesla’s stock price come Thursday.
This could exacerbate the struggles of TSLA, which has already taken a beating in 2024, plummeting nearly 28% and shedding billions in market value amid the EV industry’s recent downturn.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.