From Nasdaq: 2024-08-01 07:32:00

Tesla’s stock has had a rocky start to 2024, but Cathie Wood of Ark Invest is bullish, predicting shares to reach $2,600 by 2029 — over 1,000% higher. Wood’s optimism is based on Tesla’s future in autonomous driving technology, particularly through subscriptions to its full-self driving software (FSD).

Elon Musk is driving Tesla’s focus towards autonomous driving, believing it to be a game-changer. In addition to FSD, Tesla is working on developing humanoid robots called Optimus for commercialization. Musk’s ambitious plans to have thousands of robots in Tesla factories by next year could revolutionize the labor market and enhance productivity.

While Cathie Wood’s optimism is backed by Tesla’s subscription model for FSD, the company’s energy storage business is thriving and underappreciated. Over the past year, Tesla has doubled its energy storage revenue and maintains strong unit economics with expanding gross margins. This segment’s growth is crucial for Tesla’s overall profitability and investment in AI initiatives.

Tesla’s valuation is a topic of debate among analysts, but investors like Wood and Musk believe in its potential beyond just being a car company. With a focus on AI, Optimus robots, and sustainable energy, Tesla’s total valuation may not align with its market cap. Its opportunities in disruptive technologies make it a strong long-term buy for investors with a bullish outlook on the company’s future.



Read more at Nasdaq: Cathie Wood Thinks This Artificial Intelligence (AI) Stock Can Soar by 1,082%. Here’s Why I Think It Could Run Even Higher Than That.