Tesla’s stock often attracts bold price targets from analysts, and one recent prediction has caught considerable attention. Alexandra Merz, the CEO of L&F Services, set an ambitious price target of $10,000 for Tesla shares, based on the company’s potential beyond just vehicle sales. This target comes in the wake of ArkInvest’s valuation of $2,500, which Merz acknowledged as justified, but believes Tesla’s true worth could be much higher.
Merz pointed out that ArkInvest’s model did not take into account Tesla’s humanoid robot, Optimus, which is anticipated to hit the market by the end of 2025. The notable aspect of this robot is its potential to revolutionize various industries, serving as a “vision to action” translator that interprets visual data to perform tasks in real-time. This innovation could significantly transform Tesla’s business model.
The crux of Merz’s bullish outlook stems from a transformative vision for Tesla’s future that extends into the realm of autonomy. If Tesla successfully rolls out its robotaxi fleet, the company could pivot away from selling cars in the traditional sense, instead focusing on a rental model for autonomous vehicles. This shift could generate recurring revenue with much higher profit margins than the current vehicle sales model, thus unlocking significant value for investors.
Currently, Tesla ranks 23rd on the list of the 30 Most Popular Stocks Among Hedge Funds, with 99 hedge fund portfolios holding TSLA shares by the end of the third quarter, up from 85 in the previous quarter. While there’s an acknowledgment of Tesla’s potential as a leading player in AI investments, some believe there are AI stocks that might offer superior returns in shorter timeframes.
In summary, while Alexandra Merz’s $10,000 price target for Tesla may seem far-fetched, it reflects a broader belief in the company’s innovative capabilities and transformative future. Tesla continues to attract interest from investors and analysts alike, emphasizing its status as a leader in both electric vehicles and potential AI solutions. The ongoing developments in the company’s technology could indeed lead to exciting opportunities in the future.