Tesla, Inc. (NASDAQ:TSLA) stock has a new price target from Cathie Wood's Ark Invest. The updated price target comes even as the high-flying stock has been locked in a lackluster phase amid the surrounding geopolitical risks and the noise around CEO Elon Musk's intention to buyout social media platform Twitter, inc. (NYSE:TWTR).
Ark Invest More Optimistic Than Ever Before: The updated price target for Tesla stock is $4,600 by 2026, with the bear- and bull-case targets at $2,900 and $5,800, respectively, analysts from the fund said late Thursday.
This previous base-case price target set by Ark Invest in March 2021 was $3,000 by 2025.
Ark Invest said about 60% of the expected value and more than half of the expected EBITDA in 2026 would come from the company's Robotaxi business. Tesla CEO Elon Musk confirmed that such a service is in the offing at the Cyber Rodeo fest to commemorate the opening of Giga Texas.
Morgan Stanley analyst Adam Jonas sees Tesla not merely as a car company, but as a "renewable energy on-shore infrastructure company." From that perspective, Tesla stock is undervalued, the analyst said.
Related Link: Where Will Tesla Stock Be In 2030? Analyst Weighs In
Wood's Model Suggest Superlative Returns: Tesla shares hit an all-time intraday high of $1,243.49 in early November. Since the start of the new year, the stock has been under pressure amid macroeconomic worries and the Ukraine-Russia war-induced component shortages and input cost inflation. After bottoming in late February, the stock managed to stage a recovery through March and early April.
Friday, Tesla stock pulled back by about 3% after Musk disclosed his bid for Twitter, shares closed at $985.
A $1,000 invested in Tesla shares at Friday's closing price would have fetched 1.02 Tesla shares. If the stock was held over the next four years, and it hits Ark Invest's price target, it would fetch $4,692 by 2026. This suggests a return of 369.2% over a four-year timeframe.
Ark Invest's Tesla model currently does not include energy business, AI-as-a-service and humanoid robot.
"If any of these opportunities developmore rapidly than expected, they could impact Tesla's share price positively," the firm said.
At the bull-case price target, the returns would be an even bigger 492%.
Related Link: Tesla's Giga Shanghai To Resume Operation Beginning Monday Following Protracted Shutdown: Report
