Ark Invest’s CEO, Cathie Wood, has revised her predictions for Tesla’s stock value in 2027. Wood now believes that Tesla’s share price will be trading at $1,400 per share, down from the previous prediction of $2,000. Both scenarios are based on the success of Tesla’s Full Self-Driving technology, with two-thirds of the company’s valuation relying on the development of autonomous vehicles. Wood is confident that Tesla is well-positioned in the United States and has gathered more data about the roads than any other company, giving it an advantage in the autonomous vehicle market. However, the timing of the implementation of autonomous taxis will determine whether the stock reaches $1,400 or $2,000 per share.
Wood’s perspective of Tesla as a tech company rather than just a car company aligns with the views of other analysts, such as Wedbush’s Dan Ives and Morgan Stanley’s Adam Jonas. However, while Ives and Jonas focus on the value of Tesla’s software and services, Wood’s thesis is centered on the potential societal impact of autonomous vehicles and taxis. Although Wood argues that removing human error from driving can significantly reduce accidents, critics highlight the challenges in training self-driving cars through pattern recognition, which may require an unrealistic number of miles and repetitions to achieve human-level capabilities.
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