Tesla stock has dipped below $700 for a couple of reasons. One, inventories are down to a low of $1,150 in April. This is a bearish signal for technical merchants. Another, it appears that support may be found in the $540 range. Inflation is hurting the stock as is a scramble to find batteries to produce more vehicles.
ARK Invest predicts Tesla will hit $1,400 a share in 2024 to a new target of $3,000 by 2025
The ARK Invest report, based on a Monte Carlo simulation, provides a detailed road map for the stock’s future. The company used 34 different inputs to create 40,000 possible outcomes. Using these results, the investment firm concluded that Tesla’s price will rise one-quarter from its current level in 2024 to $1,400 a share by 2025, and the least optimistic scenario suggests that it could reach $3,000 by 2025.
The ARK Invest predicts that as many as 60 per cent of Tesla cars equipped with autopilot will be used as self-driving cabs by 2025. The investment firm also estimates that by 2025, car-hailing will represent more than one-third of Tesla’s corporate value. By that time, ARK Invest expects the EV maker’s EBITDA to increase by $160 billion. By 2025, car-hailing will account for 70 per cent of the company’s profit.
Musk owns 190 million shares outright and has options on 101 million
Tesla Motors CEO Elon Musk has a staggering $280 billion net worth, but it could be a bit higher if he sold all of his Tesla stock. The company’s stock is currently valued at $250 billion. Musk owns 190 million shares outright and has options on another 101 million. His tax bill, if he sold all of his Tesla stock, would be about 20 percent of his total worth. As a Tesla shareholder, you might be wondering how you can afford to pay that tax if you have to sell shares. Musk is one of the most famous tech CEOs on the planet.
Elon Musk’s investment strategy is simple. His investments are split into two main categories – companies he founded or controls, and cryptocurrencies. He does not have a large public stock portfolio, so it’s hard to determine the exact value of his stock portfolio. However, his stake in SpaceX alone is worth more than $100 billion. Unlike many other tech executives, Musk does not plan to sell his stake in Tesla anytime soon, and he doesn’t intend to.
Inflation hurts Tesla stock
Elon Musk, CEO of electric car manufacturer Tesla, has tweeted about recent inflation pressures in raw materials and logistics. As a result, the price of some models has risen by over a thousand dollars in the US and $1,500 in China. Meanwhile, commodity prices have shot up to their highest levels since 2008, after Russia’s invasion of Ukraine. However, investors should not be too concerned about the rising prices.
Nonetheless, the shares of Tesla have remained resilient to the soaring raw materials cost and supply-chain problems that plague many EV startups. While its larger volume rivals have plunged by up to 23%, Tesla’s high price-earnings ratio hasn’t deterred even the most ardent believers. The recent update to Ark Investment Management’s price target for Tesla’s stock has the investment firm predicting that the shares will more than quadruple to $4600 by 2026.
Musk is scrambling to find the batteries it wants to build more vehicles
Elon Musk has warned that battery capacity will not grow at a high enough rate to meet the demands of a growing Tesla Motors market. He has said that the company will have to produce batteries at a much larger scale than the current levels of production, which will not be feasible until the end of this year. However, he insists that the company will beat its long-term targets.
Elon Musk is counting on a change in public policy to help Tesla produce more electric cars in high volumes. By 2020, eight US states are required to have 3.3 million zero-emission vehicles on the road, and California will require utilities to purchase 1.3 gigawatts of batteries to meet that mandate. These rules require automakers to make zero-emission vehicles in order to remain competitive and avoid penalties.