Photographer: Alex Flynn / Bloomberg
Photographer: Alex Flynn / Bloomberg
Cathie Wood’s Ark Invest Management expects Tesla Inc. shares to reach $ 3,000 in 2025, above the current price of $ 655. At that price, the company would be worth almost $ 3 trillion, based on the number of shares outstanding.
Ark expects there to be a 50% chance that Tesla will reach fully autonomous direction in five years, which could allow the company to scale its planned robot taxi service quickly, according to a note on Friday on the Ark website.
He also added Tesla’s insurance business to his model, believing that the offer could be implemented in more states in the coming years with better-than-average margins, thanks to the “highly detailed driving data” that the company collects.
Wood has been one of Tesla’s most fervent supporters, holding large stakes in the company in its primary fund. When Tesla’s shares retracted in February, it bought more.
The $ 3,000 goal is a long way off
Under the new Ark model, at best, Tesla could reach $ 4,000 per share in 2025 and, in the case of the bear, $ 1,500. The company predicts that Tesla’s unit sales will be between 5 million and 10 million vehicles in 2025, assuming greater capital efficiency.
The model did not incorporate Tesla’s utility energy storage or solar business, nor did it consider future price fluctuations for Bitcoin holdings.
Barron’s previously reported the target price.