Ark Invest Tesla Valuation and Trading Insights

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Ark Invest's analysis of Tesla's valuation is based on the company's ability to disrupt the traditional automotive industry.

The firm's founder, Cathie Wood, believes that Tesla's stock price is undervalued, with a target price of $3,000 per share by 2025.

This estimate is based on the company's potential to become a leader in the electric vehicle market, with a projected market share of 10% by 2025.

Tesla's strong brand recognition and customer loyalty are also key factors in Ark Invest's valuation model.

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Cathie Wood's Tesla Predictions

Cathie Wood, the CEO of ARK Investment Management, has made a bold prediction about Tesla's future. She believes robotaxis could account for 90% of Tesla's business.

This prediction was made on the eve of Tesla's annual meeting, where shareholders will be voting on whether to support or reject CEO Elon Musk's leadership.

Cathie Wood's prediction suggests that Tesla's business model is shifting towards autonomous driving and transportation services.

Sees Robotaxis in 90% of Business

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Cathie Wood sees robotaxis playing a huge role in Tesla's business, predicting they could account for 90% of the company's operations. This is a bold prediction that could have significant implications for investors.

Wood's ARK Investment Management has been a long-time supporter of Tesla, but they've recently been trimming their stake in the company. This move comes despite Wood's recent comments about the potential for autonomous taxi platforms to revolutionize the industry.

Tesla's stock has been a rollercoaster ride, with Wood's ARK Next Generation Internet ETF selling $8 million worth of shares in one day. This sale was made despite Wood's bullish outlook on Tesla's potential in the autonomous taxi sector.

Wood believes that Tesla could capture up to 50% of the autonomous taxi market, presenting a global revenue opportunity of $8 trillion to $10 trillion. She emphasized that autonomous taxi platforms are the biggest AI project evolving today.

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As an investor, it's essential to understand Cathie Wood's predictions for Tesla. Wood's firm, Ark Invest, has a significant stake in Tesla, with a holding of over 1.2 million shares.

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The company's market value is substantial, with a market capitalization of over $1 trillion.

Wood's predictions for Tesla's growth are based on her analysis of the company's electric vehicle (EV) market share. She believes Tesla will continue to dominate the EV market, with a predicted market share of 50% by 2025.

Tesla's strong brand and product lineup are key factors in Wood's predictions. The company's Model 3 is one of the best-selling EVs on the market, and its Autopilot technology is considered a leader in the industry.

Wood's firm has also been a significant buyer of Tesla shares, with a cumulative purchase of over $1.5 billion worth of stock.

Tesla Valuation and Trading

Tesla's valuation has been a topic of interest for many investors, including Cathie Wood and ARK Invest. The company's market capitalization has reached over $1 trillion, making it one of the most valuable companies in the world.

As of the latest report, Tesla's market capitalization is over $1 trillion, with a significant portion of its value coming from its electric vehicle business. This business segment has been growing rapidly, with deliveries increasing by over 50% in 2020.

Tesla's stock price has been highly volatile, with a significant increase in value over the past year, but also experiencing sharp declines in response to market downturns.

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Tesla Valuation Model

Black and white image of Tesla Model X with open falcon wing doors in a parking lot in NC, USA.
Credit: pexels.com, Black and white image of Tesla Model X with open falcon wing doors in a parking lot in NC, USA.

Tesla's valuation model is based on its ability to disrupt traditional industries, such as energy and transportation. Tesla's market capitalization has grown significantly over the years, from $1.4 billion in 2010 to over $1 trillion in 2021.

The company's ability to innovate and adapt to changing market trends is a key factor in its valuation. Tesla's revenue has grown from $2.1 billion in 2015 to $24.6 billion in 2020.

Tesla's valuation is also influenced by its competitive advantage in the electric vehicle market. The company has a strong brand and loyal customer base, which contributes to its high valuation.

Sells 85,000 Shares to Even Out ETFs

Ark Invest, led by Cathie Wood, sold over 85,000 shares of Tesla across two of its ETFs on Thursday.

This move is not to take a profit, but to even out the concentration of Tesla shares in the ETFs. Ark Invest sells Tesla shares when they make up too much of the funds.

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Steering Wheel of Tesla Car
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The 85,456 shares sold equate to over $22.2 million in value. This amount was used to purchase other stocks.

Ark Invest does not sell Tesla shares to take a profit, as it would go against their bullish thesis. They sell to keep the ETFs from being dominated by Tesla shares.

After Tesla's Q2 earnings call, when the stock was trading at around $182, Ark Invest loaded up on about $5 million in shares.

Frequently Asked Questions

Has Cathie Wood sold Tesla?

Yes, Cathie Wood's Ark Innovation sold 51,335 shares of Tesla, worth approximately $21.81 million, on Dec. 12. This transaction was the largest of the day, according to disclosed portfolio trades.

What will Tesla stock be worth in 2026?

According to major analytical agencies, Tesla stock is expected to reach $305.36-$471.00 by 2026, with continued growth in asset quotes. However, actual stock value may vary based on market fluctuations and analyst predictions.

Alexander Kassulke

Lead Assigning Editor

Alexander Kassulke serves as a seasoned Assigning Editor, guiding the content strategy and ensuring a robust coverage of financial markets. His expertise lies in technical analysis, particularly in dissecting indicators that shape market trends. Under his leadership, the publication has expanded its analytical depth, offering readers insightful perspectives on complex financial metrics.

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