From Nasdaq, Inc.:



Tesla, a leading electric vehicle (EV) producer, relies heavily on EV sales for its revenue and is facing increased competition in the space. However, seasoned technology investor Cathie Wood believes that Tesla’s biggest opportunity lies in artificial intelligence (AI). The company is using AI to develop autonomous self-driving vehicle software, which Wood’s firm predicts will account for 67% of Tesla’s earnings by 2027. While the company currently leads in the EV space, it must expand its production capacity and create new revenue streams in order to maintain its desired growth rate in the long term. Tesla has also been working on the development of its advanced full self-driving (FSD) software for over 10 years, which the company plans to use to launch a fully autonomous robotaxi.

The company has high ambitions to produce 20 million electric vehicles per year by 2030, and is also aiming to launch a fully autonomous robotaxi by 2024. Tesla could significantly transform its business model through robotaxi and autonomous driving technologies, as it anticipates generating over $1 trillion in annual revenue by 2027. While these forecasts are ambitious and still speculative, if achieved, they could result in a significant increase in Tesla’s stock value. However, given the speculative nature of these forecasts, day traders may choose to approach Tesla stock cautiously and conduct thorough research before making any major investments based on such predictions.



Read more: Tesla Makes Money Selling Electric Vehicles, But 67% of Its Earnings Might Soon Come From This Instead