Tesla: Shares could skyrocket 1000% by 2027, according to analyst

Many Tesla investors believe the automaker’s autonomous future could generate significant revenue. An analyst recently predicted that Tesla’s stock will skyrocket in the next few years as the company monetizes its robot taxis, and that prediction has also received endorsement from CEO Elon Musk in recent weeks.

Tesla’s market cap is currently close to $570 billion, making the company worth as much as the next five most valuable automakers combined.

The automaker dominates the EV market, holding about 24% market share in battery EV sales in March. Just behind Tesla, the closest competitor holds just 15% of the battery electric vehicle market share.

Tesla is also preparing to build a new Gigafactory in Mexico that will produce a mass-market vehicle that is more affordable than its current cars and will also include full self-driving capability.

In the field of autonomy, Tesla is far ahead of the competition, with significantly more vehicles equipped with self-driving and fully autonomous driving than any other company. Full Self-Driving beta testers also provide a significant amount of data to help teach the automaker’s AI, and its transition to a mass-market vehicle will likely only increase the number of cars using these systems.

Ark Invest detailed three possible outcomes with its valuation model for 2027. In a downside scenario, the company expects Tesla to hit $1,400 per share in the same year, while it expects shares to hit $2,500 in an upside scenario. Its mid-term forecast projects Tesla to top $2,000 per share, generating up to $1.02 trillion in revenue by 2027, about 44% of which will come from the robotaxi business.

It’s not yet clear when Tesla will roll out an app-based driving program for its vehicles, and it’s clear that the Full Self-Driving beta still has a long way to go before reaching more advanced levels of range. However, Wood believes Tesla could generate $4 trillion in revenue from robotaxis and an app-based ride-hailing service by 2027 and up to $9 trillion by 2030.

With information from Inside electric vehicles.

Post-Tesla: Stocks May Skyrocket 1,000% by 2027, According to an Analyst First Appearing on Olhar Digital.

Source: Olhar Digital