Risk, returns & timeframes illustration
1 min read
April 25, 2023
by
Regan Pearson

Tesla’s growing pains 🩹

Carmaker Tesla may have led the electric vehicle lineup for nearly two decades, but the teenage OG is now sharing the stage with shiny new wheels. It hasn’t stopped ARK Invest fueling high hopes for the company’s autonomous robotaxis to get the wheels spinning, but could they get gassed by other EV-makers?
Tesla battery charging graphic tesselated
1 min read
April 25, 2023
by
Regan Pearson

Tesla’s growing pains 🩹

Carmaker Tesla may have led the electric vehicle lineup for nearly two decades, but the teenage OG is now sharing the stage with shiny new wheels. It hasn’t stopped ARK Invest fueling high hopes for the company’s autonomous robotaxis to get the wheels spinning, but could they get gassed by other EV-makers?
1 min read
April 25, 2023
by
Regan Pearson

Tesla’s growing pains 🩹

Carmaker Tesla may have led the electric vehicle lineup for nearly two decades, but the teenage OG is now sharing the stage with shiny new wheels. It hasn’t stopped ARK Invest fueling high hopes for the company’s autonomous robotaxis to get the wheels spinning, but could they get gassed by other EV-makers?
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Ahh, they grow up so fast! One minute Tesla (TSLA) is a snappy young startup, the next it is old enough to hit the bars, in Aotearoa at least. In true Tesla style, the company has indulged by launching their own brew, a NZ$160 German brewed pilsner called GigaBier. 🍻

But the electric vehicle industry is maturing too. Competition is ramping up, prices are coming down and there are even electric car shows now! ⚡ After being the industry’s child star for many years, Tesla is starting to face some growing pains as they jostle for market share. 

And just like us at 19, Tesla is experimenting to see what works. That includes cutting prices six times this year, which has slimmed down Tesla’s profit margins. But while Tesla’s share price fell almost 10% on the news, Elon Musk ain’t bothered. In fact, Musk says it’s better to sacrifice money today to get more cars on the road, even at lower margins. That’s because cars on the road could one day be put to work harvesting revenue as autonomous robotaxis. 🚕

The idea of an armada of self-driving Teslas cruising the streets was music to the ears of Tesla superfan ARK Invest. 🎶 Fund manager Cathie Wood bought large amounts of Tesla shares for their flagship ARK innovation ETF (ARKK) and thinks Tesla shares could be valued at US$2,000 per share by 2027. That would potentially value the company at a casual US$5 trillion

Needless to say, some other analysts aren’t so optimistic. ARK Invest’s opinion leans heavily on Tesla becoming a robotaxi behemoth. But competition is creeping in. GM’s (GM) Cruise robotaxi division is testing autonomous cars on the road, along with Alphabet’s (GOOGL, GOOG) Waymo division… when they’re not trying to run from the law. The industry still has a long way to go, but that’s just part of growing up. 🎸

Regan Pearson
Finance writer
Linkedin

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

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