ARK Investment Management CEO Catherine Wood had an impressive year of 2020, with several ETFs from her company among the best performers. One of his best moments for 2021 may have happened this week with a 2018 call coming to an end.
What happened: Wood made a bullish bet on Tesla Inc (NASDAQ: TSLA) in February 2018, asking for actions to reach $ 4,000.
Taking into account a five-to-one split in August 2020, the shares reached $ 800 on Thursday, reaching Wood’s original target price.
Wood said the Tesla stock case was reaching $ 600, which would still be twice the price at the time.
“If we’re right, the stock on our models goes to $ 4,000. If we are wrong and everything they do is electric, our bear case costs $ 600, ”said Wood at the time.
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Because it’s important: Tesla is one of the main holdings of Wood’s ARK ETFs and helped the fund rank among the best performers.
Wood had the highest price target at the time and was questioned for being too optimistic about Tesla, but remained behind his high-stakes game as he continued to hold shares. At the time, Tesla’s highest price target was $ 500 per share, which means that Wood was twice its target.
Even in 2020, analysts and investors are trying to decide whether Tesla is an automotive company or a bet on energy and automotive or a technology company.
“The future is transportation as a service, software as a service. That’s where Tesla is going, ”said Wood in 2018.
Given today’s debate and Tesla’s assessment, it may be that Wood got it right with this connection.
What is the next: Wood became even more optimistic in February 2020, issuing a new positive argument for Tesla’s shares to reach $ 7,000 in 2024.
The target price adjusted by Wood’s $ 1,400 division is based on Tesla seeing gross margins approach 40%, capital efficiency improving through the scale of production and the evolution of autonomous capabilities and penetration of the autonomous taxi service .
Wood gives the target price of $ 1,400 a 50% chance of getting it right. The $ 300 box is based on 3.2 million cars sold in 2024 and has a 25% chance of probability.
The positive argument for Tesla de Wood shows Tesla’s shares reaching $ 3,000.
TSLA price action: Tesla shares closed Friday with a 7.8% rise at $ 880.02.
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