Investors who think Tesla shares are overvalued are discounting the fact that the company will be a major player in the autonomous taxi market, a $2 trillion opportunity, one fund manager told CNBC, adding that the stock could be worth "multiples" more than its current $51 billion valuation.
Last year, Tesla CEO Elon Musk announced his intention to begin a Tesla ride-sharing platform when regulators approve fully self-driverless cars.
"When true self-driving is approved by regulators, it will mean that you will be able to summon your Tesla from pretty much anywhere. Once it picks you up, you will be able to sleep, read or do anything else en route to your destination," Musk wrote in his "Master Plan, Part Deux" last year.
"You will also be able to add your car to the Tesla shared fleet just by tapping a button on the Tesla phone app and have it generate income for you while you're at work or on vacation, significantly offsetting and at times potentially exceeding the monthly loan or lease cost. This dramatically lowers the true cost of ownership to the point where almost anyone could own a Tesla."
Musk's plan poses a challenge to the likes of Uber, but also allows the company to tap into the autonomous taxi market, which could be worth $2 trillion globally in the next few years, according to research carried out by ARK Invest.
Catherine Wood, the CEO of ARK Invest, said that many investors who think that Tesla is overvalued are missing the fact that Tesla could be a major player in the autonomous taxi market.