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Tesla (NASDAQ: TSLA), may be making its way towards Ark Invest’s Golden Goose scenario. This involves a $22,000 pre-split price target.
ARK Invest updated its TSLA valuation at the start of 2020 based on the new research that it had gathered. ARK analysts presented ten different scenarios Tesla could adopt up until 2024, and each scenario was assigned a target price.
Tesla is on course to meet the price target set by ARK Invest for \”The High-Functioning EV Company\”, which is $3,400. Remember that ARK published these estimates before Tesla’s stock split. In this scenario Tesla lowers costs, builds factories efficiently but does not launch its autonomous network.
Esla could continue to lower costs in the future. Zachary Kirkhorn, the CFO of Tesla, stated in the third quarter earnings call that the company would continue to lower manufacturing and operating costs.
\”We also see benefits from the continuing upward trend in locally built and delivered vehicles, which has increased over the past year from less than 50% to more than 70%, which is an important component of our cost-reduction strategy,\” he said.
Gigafactory Shanghai proved that Tesla can build factories efficiently.
Tesla China was a major contributor to the company’s profitability this year. Giga Berlin, Giga Texas and Giga Shanghai are not progressing as quickly as Giga Shanghai. Tesla stated that construction of Gigafactory Berlin is on schedule, and production could start by 2021. — Adam (@AdamHoov) November 26, 2020 These numbers don’t seem so crazy anymore (we’re at $2875 post split) $tsla @ARKInvest pic.twitter.com/PFkJMaOOvF
Tesla appears to have met the criteria for ARK Invest’s “The High-Functioning EV Company” scenario, which justified a price target of $3400. Tesla would then have to address autonomy.
Analysts at ARK have divided the ten scenarios into two categories, No Autonomous (no autonomy) and Autonomous (autonomous). Tesla’s price target is affected by the difference between achieving autonomy or failing to achieve it. ARK’s target price jumps from $3.400, the highest price in the No Autonomous Category to $15,000, the lowest in the Autonomous Category.
Tesla’s Golden Goose depends on the success or failure of Full Self-Driving. Last month, the EV automaker launched FSD beta and showed huge improvements.
FSD beta is a positive step for Tesla, even though it has a way to go to launch an autonomous network.
Baron Capital, one of the most respected financial firms in the world, hosted a live event this year for investors. The keynote speaker was Elon Musk CEO of Tesla.