Tesla Stock Is Plunging, but 1 Wall Street Analyst Thinks It Will Soar 855% in the Next 5 Years

Core Insights - Tesla is a leading electric vehicle manufacturer, but investor focus is shifting towards its full self-driving software, Cybercab robotaxi, and Optimus robot, which are seen as potential trillion-dollar platforms in the future [1] - Cathie Wood's Ark Investment Management predicts Tesla's stock could reach $2,600 by 2029, driven by products like FSD and Cybercab [2][3] - Despite this optimistic outlook, Tesla's stock has dropped 43$15,000, making it difficult for Tesla to compete [6] Market Dynamics - Consumer hesitance towards Tesla may be influenced by Elon Musk's political involvement, leading to increased dealership attacks and declining resale values [7] - Tesla's revenue in 2022 was $97.6 billion, with 79$756 billion in annual revenue by 2029, contributing to a total revenue of $1.2 trillion [11] - The success of Tesla's autonomous ride-hailing service is contingent on the approval of FSD for unsupervised use, which has not yet been granted [10] Financial Metrics - Tesla's earnings per share (EPS) fell by 53$2.04, with a high price-to-earnings (P/E) ratio of 134, significantly above the S&P 500's 22.9 [13] - The stock would need to drop by 82% to align with the S&P 500, and further declines in EPS are expected if EV deliveries continue to decrease [14] Investment Considerations - While Tesla stock may appear attractive if Ark's forecasts are accurate, the high risk of further downside suggests caution for investors [15][16]