Cathie Wood’s Ark Invest maintains a highly bullish 2029 target price of $2,600 for Tesla (TSLA) stock. This projection is heavily driven by the expected value of Tesla's autonomous robotaxi business, which is projected to account for nearly 90% of the company's enterprise value by that time.
Wood's price target for Tesla stock is $2,600 by 2029. That's up more than 450% from recent levels and implies average annual gains of about 50% for the coming four years. That's an incredibly bullish outlook, driven mainly by the value ARK sees in Tesla's self-driving robo-taxi business.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. TSLA has an Earnings ESP of +3.15% and a Zacks Rank #4 (Sell).
Despite a tough start to 2025 for Tesla (NASDAQ:TSLA), Ark Invest CEO Cathie Wood remains confident in the electric vehicle maker's long-term potential. Speaking to Bloomberg, she said her forecast for the stock remains unchanged, predicting it could reach $2,600 within five years.
This diversity suggests differing views on growth prospects, valuation, and risk. The average price target currently sits at $409.65, implying a 8.4% overvaluation from the current trading levels. Analysts' individual targets range widely, from a low of $130 to a high of $600.
A Tesla can be priced as low as $42,490 or as high as $125,490 in 2025, depending on the model and added features. The cheapest Tesla model is the base Model 3 Rear-Wheel Drive, starting at $42,490. This is less than the average cost of an electric car, which is about $55,000.
Based on comments from Tesla regarding its future revenue drivers and opportunities, as well as the new pay package milestone, Kallo estimates that Tesla stock could be worth between $1,400 and $3,000 in 2035. "The road ahead is chock-full of catalysts."
Cramer noted the company's transformation during the December 11 episode, as he said: “Finally, Tesla's transitioning from auto company to tech company, from a company that's getting its head handed to it in sales to a company that's a nascent leader in robots and self-driving cars and in energy storage.
Cathie Wood's ARK Invest has been selling portions of its Tesla holdings not because she's turned bearish long-term, but to rebalance portfolios and manage risk after gains, reduce concentration in a huge flagship position and fund buys in other high-conviction names like Robinhood, Block and crypto-related stocks.
Tesla's valuation reflects market enthusiasm
It trades at a price-to-earnings ratio of 307. Based on the valuation, it's certainly too late to buy shares. The market is extremely enthusiastic about the business.
For example, over a 20-year period, being out of the market for the top 10 performing days could cut your total returns in half. So while pulling your money out of the market may help you avoid short-term losses, it also carries the risk of missing the rebound.
Tesla (TSLA) has been analyzed by 26 analysts, with a consensus rating of Hold. 23% of analysts recommend a Strong Buy, 23% recommend Buy, 31% suggest Holding, 12% advise Selling, and 12% predict a Strong Sell.
Wood's ARK Innovation (ARKK) ETF and ARK Next Gen Internet (ARKW) ETF bought a combined 115,380 TSLA shares on Tuesday for an estimated $35.86 million, according to Wood's ETF daily trade disclosures. The comes after Wood's Ark Invest purchased nearly 60,000 shares on Friday.
Tesla's wild ride
For a growth company, that 10% stock price growth last year might seem unremarkable. But Tesla stock moved around a lot in 2025. For example, an investor who bought in when the share tumbled in April would now be sitting on a 99% paper gain.
Tesla lacks a moat
Competition is inevitable for companies, but some are much better equipped than others when it comes to dealing with it. And for Buffett, that is a paramount issue: he prefers companies that have a defendable, competitive advantage over its rivals that can allow it to outperform over the long run.
With a market cap that soars above traditional automotive firms, Tesla's valuation is often seen as representative of a larger tech bubble. Investors, drawn by innovation and Elon Musk's visionary leadership, may sometimes overlook fundamental metrics, focusing instead on brand potential and future profitability.
A 70-year-old, for example, would keep 30% of their portfolio in stocks and the rest in safer investments like bonds and savings accounts. But with longer life expectancies and rising costs, many experts now suggest a more growth-oriented formula: the “120 minus age” rule.
Overall, there are more than a dozen price targets at $500 or greater for Tesla stock, according to FactSet. The average analyst price target is about $420 a share. One of the $500-plus targets is from Canaccord analyst George Gianarikas. He hiked his target on Monday evening to $551 from $442.
The firm pegs Tesla's base-case valuation at $600 per share, with a bullish bull-case target of $800, implying an eye-catching 64.7% upside from current levels.
If you'd invested $10,000 in Tesla stock five years ago, you'd be sitting on nearly $138,600 now. That's a stunning multibagger stock.
But Musk's influence within conservative politics has inspired a growing segment of people to ditch their Tesla, as they don't want to be connected to Musk and had tied his political actions to their ownership of vehicles produced by his company.
On Tuesday, in a post on X, Burry said, “Tesla is ridiculously overvalued,” after the company shared consensus estimates of its fourth-quarter vehicle sales on Monday, with projected figures coming in below investor expectations.