Cathie Wood Sets a Target Price of $4,400 for Tesla
Coinpaper
2h ago
Ai Focus
Mu Tou Jie Cathie Wood's subsidiary ARK believes that Tesla's valuation by 2031 will be mainly driven by robot taxis and Optimus humanoid robot business, setting a target price of $4,400. The article also mentions that after Tesla announced its third-quarter financial report, revenue was approximately $28 billion, with net profit declining by 44% to $787 million year-on-year, but the adjusted earnings per share of $0.48 were slightly higher than expected.
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According to ark-invest.com, compared to Tesla's closing price of $373.71 on October 20, this baseline scenario predicts a potential increase of about 1077%.

Wood has long been optimistic about Elon Musk, Tesla's CEO,'s ambition to transform the automaker into a giant in the fields of artificial intelligence, autonomous driving, and robotics.

Cathie Wood Betting on Tesla's robotic taxis and Optimus

The radical predictions of ARK rely heavily on Tesla's robot taxi business. The investment firm expects that by 2031, this business will account for about 80% of the company's enterprise value. Their forecast assumes that Tesla will be able to operate 8.1 million robot taxis by then and generate annual online car-hailing revenue of approximately $753 billion.

At the same time, ARK expects Tesla's Optimus humanoid robot business to become another major revenue driver, potentially contributing $212 billion per year by 2031.

The model of this investment firm also predicts that if autonomous driving, robotics, and energy businesses expand as expected, Tesla's market value could reach approximately $17.5 trillion. However, these forecasts depend on aggressive commercialization assumptions, including regulatory approval, technological progress, and widespread adoption.

Tesla's stock price rose before its financial report, but fell after the results were announced.

However, after Tesla released its third-quarter financial report, this round of gains encountered new uncertainties.

The company reported revenue of approximately $28 billion, with net profit declining by 44% year-on-year to $787 million. Adjusted earnings per share were $0.48, slightly higher than analysts' expectations.

Although ARK is optimistic about the huge opportunities in the fields of autonomous driving and robotics, Tesla still needs to prove that these businesses can generate revenue and profits sufficient to support such an astonishing valuation.

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