Here’s How Much $100 Invested in Tesla Stock Today Could be Worth if Cathie Wood’s Prediction Comes True in 2031
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Ark Invest CEO Cathie Wood is known for her future price predictions when it comes to electric vehicle giant Tesla Inc, after famously seeing her 2018 bullish prediction came true years later.
A new price prediction from Ark Invest factors in several areas of growth. While that won’t be enough to make every shareholder become a trillionaire like Tesla CEO Elon Musk, investors who buy shares today could do quite well if Wood is right once again.
Following Wood into Tesla
Wood and Ark Invest recently announced a $4,400 base price target for Tesla stock, raising the bar from a previous price target of $2,600 for the stock.
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The ETF company announced a bear case of $3,300 per share and bull case of $5,000 per share alongside the base case.
With Tesla shares trading at $375.10 at the time of writing, an investor could purchase 0.2666 shares with $100 today.
Here’s a look at how much the $100 could be worth in 2031 if Wood’s various price targets come true:
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$3,300 Bear Case: $879.78, +779.8%
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$4,400 Base Case: $1,173.04, +1,073.0%
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$5,000 Bull Case: $1,233.00, +1,233.0%
Each of the price targets from Wood would gain 779% or more, representing huge returns over the next five years.
Keep in mind that the average return of the S&P 500 Index is around 10.5% annually since the fund’s 1957 inception. The price target from Wood would mark a sizable outperformance to historical stock index returns.
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Price Target Assumptions
The new price target is based on several factors, with the majority of the price target coming from Tesla’s robotaxi ambitions.
Ark estimates that 80% of Tesla’s enterprise value and earnings will come from Robotaxis in the future.
The Optimus Bot is also listed as a key revenue driver for the future.
Ark Invest also lays out the case that Tesla could merge with SpaceX within the next five years, which would change the price target and business model.
The ETF company said that Tesla’s robotaxi network and growth could help fund SpaceX’s future growth plans for items like orbital data centers.
“Combined, we estimate that SpaceX and Tesla could generate $3.8 trillion in revenue and $2.7 trillion in EBIT by 2031,” the report said, with SpaceX responsible for 62% of the revenue and 69% of EBIT.
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Tesla CEO Elon Musk has highlighted the potential value of the robotaxi business and Optimus bot as being the catalysts that could make Tesla the most valuable company in the world and worth north of $20 trillion.
Many laughed at Wood when she made her bullish $4,000 price prediction back in 2018. Years later, the stock was north of that level on a price adjusted value. Wood continues to bet heavily on Tesla with the stock the top holding across three main Ark ETFs. Here is the current Tesla weighting at the time of writing:
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Ark Innovation ETF: 10.2%, top holding
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Ark Next Generation ETF: 7.7%, top holding
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Ark Autonomous Technology & Robotics ETF: 11.7%, top holding
Benzinga previously published this article, and it has been updated.
Photo: Cathie Wood: courtesy Ark Invest, Tesla: Shutterstock
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