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Sunday, January 24, 2021

ARK Invest’s Tesla Stock Forecasts Looking Very Feasible

Tesla stock is slowly moving towards the Golden Goose situation of Ark Invest that involves a pre-split price target of $22,000. In 2020 beginning, ARK Invest launched its TSLA valuation which s based on new research collected then. ARK analysts talked about ten different ways that Tesla can take up to 2024 and provided each one with different price targets.

Tesla is on track to achieve the scenario that ARK Invest termed as the High EV Functioning Company having a $3400 price target. However, ARK released their estimates before TSLA declared about splitting the stock. In this process, Tesla will build factories and lower costs without launching an autonomous network. In the meantime, Tesla should concentrate on lowering input costs and on building factories efficiently.

CFO’s Opinion On Tesla Stock’s Future

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Tesla is further cutting costs this year and will continue the same for years to come. In the 3rd quarter earnings call, Zachary Kirkhorn, CFO, stated that TSLA will reduce operational costs and manufacturing in near future.

Benefits are appearing from the trend of building and delivering cars locally, which has raised from below 50% at last year beginning to above 70% recently. It is a crucial component of their price reduction strategy. Zachary Kirkhorn, CFO, Tesla believes that it is one of the ten ways of moving forward and keeping things in a balanced manner.

Tesla stock
Tesla stock

Gigafactory Shanghai thinks that Tesla can build factories easily. Tesla China is an important part of TSLA’s profitable quarters in 2020. The construction work regarding Giga Texas and Giga Berlin is not so fast as that of Giga Shanghai. However, Tesla stated that construction regarding Gigafactory Texas and Berlin is moving normally and can start production activity by 2021.

ARK Invest’s Scenario

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Tesla has completed ticking off both the factors included in ARK Invest’s “High EV Functioning Company” situation that requires a price target of $3400. After moving through this scenario, Tesla would be required to tackle its autonomy.

ARK analysts have split all the scenarios, totaling ten, into these two categories: Autonomous and No Autonomous. The difference in Tesla getting autonomy and then failing in it miserably can affect the company’s price target. ARK’s requirement of price target is from $3400 for the highest one in the category of No Autonomous, to $15000 being the lowest target of price in the category of Autonomous.

It appears that the scenario regarding Golden Goose is dependent on the absolute success regarding Full Self-Driving.EV automaker launched its FSD Beta past month which is showing massive improvements. Tesla has a huge job to cover before the company can launch its autonomous network successfully. It has a job of cutting down further manufacturing costs and other input costs along with the measures that are stated above. However, FSD beta is possibly a climb towards the positive direction.

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