The company’s bull case suggests that the price could rise to around $5,800 by 2026 and the bear case suggests $2,900, still around three times the current stock price of $1,005. “Although adjusted to our expectations for 2026, we believe that our model Tesla it is methodologically conservative,” Ark analyst Tasha Keeney wrote in a blog post last week.
“We assume that the actions of Tesla will be listed as a mature company rather than a high-growth company in 2026.”
Wood has long been an ardent supporter of Tesla and its CEO, Elon Musk. While Ark Innovation’s flagship ETF cut its position in Tesla last month, the electric vehicle maker remains the largest holding of it, accounting for 10% of the fund.. The actions of Tesla they gained about 1.8% on Monday.
Ark has also increased his belief in the ability to Tesla to achieve full autonomous driving, with the automaker’s potential robotic taxi business contributing 60% of its expected value in 2026.
Another factor is the expectation that Tesla more capital efficient, Keeney wrote, noting that Tesla’s capex per unit of incremental capacity has fallen to $7,700 from $84,000 in 2017.
Meanwhile, Tesla’s bitcoin holdings are included in Ark’s model but not considered a key component of the forecast, raising the price target by less than 5%, Keeney wrote. Other business opportunities Tesla could take advantage of that are not included in the model include an energy storage business, artificial intelligence as a service and a humanoid robot.
Source: Ambito
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