ARK Invest projects Tesla stock could reach $5,000 by 2031

ARK Invest, led by CEO Cathie Wood, has released an updated valuation model for Tesla (TSLA) projecting significant growth over the next several years. In an optimistic upside scenario, analysts predict Tesla shares could reach $5,000 per unit by 2031, representing a potential increase of over 1,200% from current trading levels.

The firm’s projections include a base case of approximately $4,400 per share and a worst-case scenario of $3,300 per share. To achieve these valuations, ARK suggests Tesla must successfully expand beyond electric vehicle sales into new segments, specifically focusing on the commercialization of autonomous transportation (Robotaxi) and humanoid robotics (Optimus).

Under the most bullish projections, Tesla could reach a market capitalization of $20.4 trillion, supported by an estimated $1.62 trillion in annual revenue and a 65% EBITDA margin. While Tesla has shown robust demand in recent quarters, particularly in Europe, achieving these targets would require massive scaling of its technology and service sectors.