With respect to recent development as we head towards the end of 2022, have you wondered how much Tesla could still grow in the future? Although this year has been a red flash for companies and businesses, Tesla still struggles to make it green and record a performance that keeps investors optimistic about the future.
It opens two Giga factories in Germany and Texas, both of which scale its production capacity to double its previous annual vehicle production. In today’s blog, we want to discuss what Cathie Wood, the founder and CEO of ARK-invest, has to say about Tesla’s growth potential.
Tesla Stock and Potential for Growth
According to Wood, the hike in oil prices has increased the preference of consumers towards electric vehicles. This opens more sales advantages to electric automakers, of which Tesla is the major player. Wood also believes that “there is no stopping that trend now”.
“Not only did we believe that Tesla will take the biggest share of the electric vehicle market. But we also believe that it could take up to 25% of the entire automobile market by 2026,” stated Wood.
A production capacity of around two million vehicles gave Tesla the upper hand in the EV automobile business.
Arc-invest expects Tesla will go to the moon, especially if it hits the same record of first success with autonomous driving as it did with electric vehicles.
Since consumers value their time, Wood believes there will be more demand for autonomous cars at a higher price than the current Tesla models. That indicates a higher opportunity for Tesla’s revenue to grow when this happens.
Musk agreed with Cathie Wood’s prediction of 3000 dollars per share for Tesla if they perform well. This will put the company at a market cap of around 3 trillion dollars. Tesla is, at the moment, rated as the most valuable automobile company in the world. If Wood’s prediction becomes a reality, Tesla will make it up to becoming the most valuable company in the world.
Ark-invest foresees the robotaxi business that Tesla is diving into as a base ground producing around sixty per cent of the company’s expected value. Prior to the update, ark-invest doubted the ability of Tesla to succeed with autonomous driving sooner. However, they’ve changed their stand after seeing recent innovation and development of the EV Company.
Wood believes that Tesla will enjoy some merits if it launches a vertically integrated ride-hail service. According to her, ride-hail service will pave the way for the expansion of the robotaxi network and raise the chance that Tesla will succeed with the commercialization of robotaxi. “A ride-hail data will give Tesla more data to train autopilot”, she said. This tells us that launching the ride-hail would increase Tesla’s real-world driving data and consequently improve the company’s profitability over time.
Self-driving software technology is another leading edge for Tesla. Experts’ estimation forecast a 2.1 trillion-dollar industry out of this section. If Tesla takes up a big share of this section, it’ll reflect magnificently on its stock. Of course, they do have the upper hand because self-driving requires huge driving data to actualize. With their moving computers recording data around cities worldwide, no other competitor could possibly beat them at the game.
Tesla still stood to keep the biggest profit margin of 27.9 in the third quarter of 2022 compared to other automakers. Moreover, Tesla has other businesses with very high demand, an example of which is solar power generation and storage. The EV Company also revealed the humanoid robot on this year’s AI day, called Optimus.
ARK’s team of analysts project that gas automobiles will be obsolete by the next decade. Even though Tesla has already led the EV market phase, we still believe in its ability to lead the next revolution of human mobility and improve logistic businesses through autonomous driving.
According to Elon Musk, Tesla is projected to add more Giga factories to increase production capacity to as high as 20 million vehicles in a year by 2030. Revenue now and when the production is increased ten-fold could push Tesla to a market value of more than a trillion dollars.
Looking at the drop in Tesla stock and the global economic crisis to judge, Tesla stock in the next year is a short-term perspective, which is not the best way to invest.
Potential Skyrocket of Tesla Stock
Experts still believe in the potential skyrocket of Tesla stock beyond what average retail investors could afford, considering the treasures the EV Company could unleash to the world with its non-stop innovation. Therefore, it’s a wise decision to buy a Tesla dip and patiently wait for the surge.
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Recommended books for further reading:
- Intelligent Investor: The Definitive Book on Value Investing – A Book of Practical Counsel
- The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns (Little Books. Big Profits
- The Financial Times Guide to Investing:The Definitive Companion to Investment and the Financial Markets: The Definitive Companion to Investment and the Financial Markets
- How to Make Money in Stocks: A Winning System In Good Times And Bad
- Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week
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