Part 3/9:
The crux of ARK's valuation centers around the expectation of a fully autonomous ride-hailing service launching within the next two years. Tesla has indicated plans to have millions of robo-taxis operational globally, with Elon Musk suggesting 90% market capture. This outlook appears to exceed earlier estimates from ARK, which was more conservative with its forecasts. The anticipated revenue model relies on the robo-taxis achieving operational efficiencies—potentially 50 to 60 hours of operation weekly—which many analysts argue could be significantly higher due to the absence of a driver.