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The key, according to Wang, is the potential for Tesla's energy storage and FSD businesses to become as profitable as its core automotive operations. If the Megapack factories can triple output and FSD adoption surges, the resulting revenue and margins could supercharge Tesla's overall profitability.
While Wang's $1,000 price target by the end of 2025 may seem aggressive, he has laid out a compelling case based on Tesla's potential milestones and earnings growth. The market's reaction to Tesla's Q4 2023 results and 2024 guidance in January will be crucial, as will the company's progress on FSD and energy storage in the coming year.