Wild predictions concerning Tesla’s stock price are quite common, but they often seem to materialize regardless of how outlandish they may appear. Recently, Alexandra Merz, the CEO of L&F Services, made headlines by announcing a staggering price target of $10,000 for Tesla shares. Interestingly, her prediction suggests a future where Tesla might stop selling cars altogether.
During a discussion with Yahoo Finance, Merz weighed in on Tesla’s potential, specifically in light of Ark Invest’s more conservative $2,500 price target. While she acknowledged the validity of Ark Invest’s assessment, her own bullish outlook placed the company’s value significantly higher.
One of the key points in Merz’s argument revolves around Tesla’s humanoid robot, Optimus, which Ark Invest did not account for in its valuation. Tesla is expected to begin delivering these robots by the end of 2025, though it’s wise to approach Elon Musk’s delivery timelines with caution.
The focus here is not merely on the delivery schedule, but rather on the technological advancements that will come with the humanoid robot. This innovation could serve as a “vision to action” translator, allowing it to interpret visual information and adapt its actions to its surroundings. The implications of this technology could lead to transformative changes across multiple industries.
Merz’s $10,000 price prediction takes into account a potential shift in Tesla’s business model. Currently, Tesla profits from the sale of hundreds of thousands of cars, which become the property of the buyers. However, if Tesla successfully unleashes autonomous driving technology and ventures into the robotaxi business, it may eliminate car sales altogether. Instead of selling vehicles, Tesla could focus on renting out robotaxis, generating recurring revenue with substantial profit margins. This transition could represent a monumental shift in the company’s operations and significantly enhance its market valuation.
In the world of hedge funds, Tesla ranks 23rd among the 30 Most Popular Stocks, with 99 hedge fund portfolios holding TSLA shares at the close of the third quarter, up from 85 in the previous quarter. While many investors recognize Tesla as a prime candidate in AI investment, there are opinions suggesting that other AI stocks might offer even greater potential for returns in a shorter time frame.
This analysis opens the door to optimistic perspectives on Tesla’s future, highlighting not only the company’s significant innovations but also the broader potential of technological advancements that could reshape industries.
In summary, Tesla’s bold ambitions and its potential pivot from vehicle sales to an autonomous ride-hailing service could redefine its business model and value in the stock market. This scenario invites excitement as the company ventures into uncharted territories of technology and consumer services.