TSLA

TSLL

<p>ARK stated that most of Tesla's commercial value comes from Robotaxi, which may launch a robot taxi network in the next few years. The overall "ups and downs" of Tesla depend on execution. It is expected that its car sales volume will expand to 6-14 million units per year in the future</p>

- Cathie Wood, along with Tasha Keeney and Sam Korus from ARK Invest, discussed ARK's valuation methods, emphasizing a combined top-down and bottom-up approach, particularly focusing on Tesla's valuation and the potential impact of Robotaxi on its business model.
- Tesla's value is seen to heavily rely on Robotaxi, potentially transforming its revenue model from one-time electric vehicle sales to recurring income. The company might pioneer large-scale robot taxi deployment, with prices potentially dropping to as low as $0.25 per mile.
- Factors like execution, key personnel (like Musk), and disruptive technologies play crucial roles in Tesla's valuation and future prospects, with a forecasted shift in the company's EV business valuation relative to EBITDA from 60x to 19x by 2029, driven by robust revenue growth and profit expansion.

"Wood Sister" elaborates: ARK's company valuation method, using Tesla as an example