Tesla Shares Rebound as ARK Sets $4,400 Price Target Ahead of Q3 Earnings

Tesla, Inc. (TSLA) ended a four-day stock decline, rising nearly 3.8% to $368.10 as the electric vehicle maker prepares to report its third-quarter financial results after the market closes on Wednesday. The gain followed a research report from ARK Investment Management, which projected a $4,400 share price target by 2031 based on expected growth in autonomous robotaxis and humanoid robots.

The upbeat long-term forecast highlights growing focus on Tesla's self-driving technology and artificial intelligence ventures. ARK estimates that robotaxis could make up 80% of Tesla's future enterprise value, with potential additional synergies if a merger with SpaceX were to occur within five years. However, market observers caution that any all-stock transaction with SpaceX could risk diluting current Tesla shareholders. Additionally, competing autonomous ride-hailing services like Alphabet, Inc.'s Waymo are moving to expand their operational fleets.

Investors are turning their attention to Tesla's upcoming quarterly earnings, where annual revenue is expected to reach $28.98 billion, though earnings per share may decline compared to the previous year. Retail shareholders have submitted questions focused on commercialization timelines, including when unsupervised Full Self-Driving capabilities will reach retail vehicles and when Cybercabs will be available for public purchase. Shareholders will also vote on board elections at the company's annual meeting on December 3.