Photographer: Alex Flynn / Bloomberg
Photographer: Alex Flynn / Bloomberg
Cathie Wood’s Ark Invest Management Expects Tesla Inc. Shares To Hit $ 3,000 by 2025, up from its current price of $ 655. At that price, the company would be worth nearly $ 3 trillion, based on the number of shares outstanding.
Ark expects there to be a 50% chance that Tesla will achieve fully autonomous driving in five years, which could allow the company to rapidly scale its planned robotaxi service, according to a note Friday on Ark’s website.
He also added Tesla’s insurance business to his model, believing that the offering could be rolled out in more states in the coming years with better-than-average margins, thanks to the “highly detailed driving data” the company collects.
Wood has been one of Tesla’s most ardent supporters, with large holdings of the company in his flagship fund. When Tesla shares saw a pullback in February, she bought more.
Under Ark’s new model, Tesla could at best reach $ 4,000 per share by 2025 and, in the case of the bear, $ 1,500. The company forecasts that Tesla unit sales will be between 5 million and 10 million vehicles in 2025, assuming greater capital efficiency.
The $ 3,000 goal is a long way off higher than any analyst the company covers, the highest being $ 1,200 among estimates compiled by Bloomberg. Fueled by enthusiastic supporters, Tesla shares rose more than 740% last year, the best performance in the S&P 500. Elon Musk, its chief executive, he became the richest person in the world in January, before Jeff Bezos regained the title.
It is not close
Analysts have speculated on the possibility of Tesla launching a robotaxi service since at least 2015, but there is little indication that its technology is close to making this possible anytime soon. Tesla recently told California authorities that human drivers will still need to constantly monitor a new city street feature within its “full autonomous driving” feature set that is sold as part of its autopilot package.
As for the company’s insurance product, it started in August 2019 and is currently available only in California. The company includes vehicle insurance revenue within its “services and others” category, along with after-sales service, used vehicle sales and retail merchandise. Last year, all that business combined was 7% of total income.
Ark’s model did not incorporate Tesla’s utility energy storage or solar business, nor did it consider future Tesla price fluctuations. Bitcoin holdings.
Barron’s reported the target price earlier.
– With assistance from Craig Trudell
(Background updates throughout)