TSLA - Tesla Makes Money Selling Electric Vehicles But 86% of Its Earnings Might Soon Come From This Instead
2024-06-25 05:02:00 ET
Electric vehicle (EV) sales account for more than 81% of Tesla 's (NASDAQ: TSLA) total revenue at the moment. The company could sell more than 2 million units this year, making it one of the largest EV manufacturers in the world.
But technology investor Cathie Wood thinks artificial intelligence (AI) -- not EV sales -- is the best reason to own Tesla stock. The company is using AI to develop its autonomous full self-driving (FSD) software, which has already completed billions of real-world miles in beta mode.
Wood's firm, Ark Investment Management, just released a fresh set of financial models suggesting that EV sales won't be the driving force behind Tesla's success for much longer. With the help of AI, Ark predicts 86% of the company's earnings will come from something else entirely.
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Tesla Makes Money Selling Electric Vehicles, But 86% of Its Earnings Might Soon Come From This Instead