Summary:
On June 13, 2024, Cathie Wood, CEO, and CIO of ARK Invest, shared her insights on Tesla Inc. and the future price target for the stock on CNBC’s “Squawk Box.” Wood discussed the recent Tesla shareholder vote, ARK Invest’s ambitious price target, the potential of Tesla’s autonomous taxi platform, advancements in full self-driving (FSD) technology, and regulatory challenges.
Tesla Shareholder Vote:
Cathie Wood discussed the recent Tesla shareholder vote, highlighting the critical decision on Elon Musk’s pay package and relocating Tesla’s legal home to Texas. She noted the support from large institutional shareholders for Musk, driven by ESG considerations and a healthy discussion for the company’s future.
- Large institutional shareholders supporting Musk surprised Wood
- Vote initially driven by ESG considerations
- Vote seen as a healthy discussion for the company’s future
ARK Invest’s Price Target:
Wood elaborated on ARK Invest’s new price target for Tesla, set at $2600 per share by 2029. This target is based on the potential of Tesla’s autonomous taxi platform, operating on a SaaS model and generating recurring revenue. Wood highlighted the higher margins in the SaaS sector compared to traditional car sales.
- Price target set at $2600 per share by 2029
- Hinges largely on Tesla’s autonomous taxi platform
- Potential for higher margins than traditional car sales
Autonomous Mobility and FSD Technology:
Wood emphasized the scale and impact of autonomous mobility, calling it the largest AI project on Earth. She discussed the rapid advancements in Tesla’s full self-driving (FSD) technology, which has significantly improved safety metrics, making Tesla vehicles equipped with FSD safer than average cars.
- Autonomous mobility described as the largest AI project on Earth
- Rapid advancements in Tesla’s FSD technology
- FSD technology significantly improves safety metrics
Regulatory Challenges:
While Elon Musk aims to have the autonomous taxi network operational within a couple of years, regulatory approval remains a crucial hurdle. However, there seems to be a shift in public officials’ attitudes towards autonomous vehicles, acknowledging the potential improvement in road safety without human drivers.
- Regulatory approval remains a crucial hurdle for the autonomous taxi network
- Shift in public officials’ attitudes towards autonomous vehicles
- Potential improvement in road safety without human drivers
Hot Take:
Stay updated on Tesla’s future developments and regulatory progress, as the company aims to revolutionize the automotive industry with its autonomous taxi platform and FSD technology. Keep an eye on the evolving landscape of autonomous mobility and the potential impact on Tesla’s stock performance.
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