ARK Invest, a long-time Tesla bull, anticipates Tesla’s Robotaxi Network will outpace competitors in scaling autonomous ride-hailing services. While Tesla may not be the first to launch such services, ARK expects it to dominate market share through rapid expansion.
Tasha Keeney, ARK’s Director of Investment Analysis & Institutional Strategies, suggests Tesla is eyeing a global market exceeding $10 trillion, surpassing current ride-hailing giants like Uber and Didi. The key to Tesla’s potential success? Dramatically lower prices.
Elon Musk projects robotaxi fares as low as $0.30 to $0.40 per mile at scale, utilizing the newly unveiled Tesla Cybercab. This undercuts both traditional ride-hailing ($2.4/mile in Western markets) and personal vehicle ownership ($0.70/mile).
Keeney argues Tesla is uniquely positioned to scale rapidly due to two factors:
- Data advantage: Tesla’s extensive fleet of customer vehicles using Full Self-Driving and Enhanced Autopilot features provides crucial real-world data.
- Manufacturing capacity: Tesla can produce vehicles at scale to grow its autonomous fleet quickly.
The introduction of the Tesla Cybercab is expected to accelerate the Robotaxi Network’s growth once production begins.
This cost advantage, combined with Tesla’s data and manufacturing capabilities, could propel the company to a leading position in the emerging autonomous ride-hailing market, according to ARK Invest’s analysis.
