By
Svetlana Soroka
April 18th, 2024
According to Ark Invest, if Tesla lands the self-driving option in the right way, it can soon launch an autonomous taxi service (robotaxis). As a result, the TSLA stock value may increase drastically and Tesla could hit $6 trillion by 2024.
The leading electric car manufacturer Tesla has been experiencing rapid ups and downs in stock price lately. After a recent jump and reaching a new record of $961, TSLA stock crashed. However, some believe Tesla can save its situation. Besides, in four years, Tesla could hit $6 trillion. This is possible if the company lands its ‘full self-driving’ technology.
Tesla’s full self-driving feature was first announced in 2019. According to Elon Musk, with this feature, a car would be able to handle autonomous journeys to some extent without any interference from a human driver. But drivers would still have to be on quick alert and ready to take over driving in case something does go wrong.
According to Ark Invest, if Tesla lands the self-driving option right, it can soon launch an autonomous taxi service (robotaxis). As a result, the company’s value can increase drastically, and Tesla could hit $6 trillion by 2024.
Ark Invest stated:
“A fully autonomous taxi network could break the mold of a traditional automotive manufacturer’s business model completely. Tesla could shift from a model of one-time transactions at hardware-like margins to a model of recurring transactions at software-like margins, charging passengers per mile and taking a platform fee.”
“We also assume that its autonomous taxi service will begin in 2021, one year after Elon Musk has predicted the service will be available, regulatory approval permitting, with just 2% of eligible Tesla vehicles on the network in its first year”, added they.
Why Tesla (TSLA) Stock Is So Unsteady
Within a couple of months, Tesla stock has doubled. By February 6, it reached $961 per share, and the total company’s value exceeded $159 billion, which became a new record for Tesla.
The company’s stock price surged nearly 100% in the last three months, but its Q4 2019 earnings took Wall Street by even a big surprise. Beating the analysts’ expectations, Tesla registered total sales of $7.38 billion against the street projections of $7.02 billion. Such performance afforded ground for Ark Invest to suggest that Tesla stock could hit $7000 price by 2024 or even $15,000. Moreover, this could put Tesla in the bracket of companies with trillion-dollar valuations.
However, on February 5, the growth was replaced by a backlash. And there are several reasons for that.
Firstly, the drop is a result of the price correction after supergrowth. Secondly, Tesla stock began to fall amid the coronavirus. In October last year, Tesla secured an advantageous agreement with the Chinese government. This was the first time China allowed a company fully-owned by a foreigner to set up a factory in the country. But because of the spread of the coronavirus, the company slowed down. Therefore, Tesla announced shutting down its locations in China until some respite is seen with the containment of the coronavirus.
Currently, Tesla (TSLA) stock costs $734.50 in the premarket.