Ark Invest Tesla Stock Price Target May Be Outrageous, But Elon Musk Says It Is Worth $3,000 A Share 'If They Execute Really Well'

Benzinga2021-09-06

Tesla Inc (NASDAQ: TSLA) CEO Elon Musk has told its employees that he agrees with Cathie Wood-led ARK Innovation ETF (NYSEARCA: ARKK) that Tesla is worth $3,000 a share "if they execute really well".

What Happened: In a recent interview, Cathie Wood said that her base case on Tesla is $3,000 a share.

"Our estimate for Tesla's success has gone up. The main reason for that is their market share. So instead of going down from year-end 2017 to today, it has actually gone up fairly dramatically," Wood said.  

However, Wood's price tag for Tesla looks outrageous. Tesla is currently trading at $733 a share, and it would have to go up above 300% to reach that price target.

Ark Invest believes that Tesla is going to deliver between 5 and 10 million vehicles as soon as 2025.

It also says Tesla will deliver a completely autonomous ride-hailing network, known as Tesla Network, that is going to bring in a lot of money with a high margin.

In an email to Tesla employee obtained by Electrek, Musk highlighted Ark's new $3,000 price target and added that he concurs with Ark's analysis. "If we execute really well, I agree with Ark Invest," Musk said.

A $3,000 share price would put Tesla's valuation at $3 trillion and make it the most valuable company in the world.

At present, the automaker is the most valuable automotive company globally at over $730 billion.

Why It Matters: Musk has often commented on Tesla's stock price. Last year when Tesla's stock was reaching a new high, Musk told his followers on Twitter"Tesla stock price is too high...imo." 

A Tesla investor sued Elon Musk and the company board, saying the CEO's "erratic" tweets violate a settlement with the U.S. Securities and Exchange Commission.

His comment resulted in a more than $13 billion loss in Tesla's market value.

Last month, Ark Invest shed less than half a percent of its position in Tesla as the shares of the electric vehicle company climbed. It sold a total of 8,100 shares, estimated to be worth about $5.76 million.

Wood's firm holds large bets in Tesla, which it predicts will hit the 3,000 mark at the end of 2025.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • zachyang
    2021-09-07
    zachyang
    Love Tesla 3000!!
  • Barbarazhao
    2021-09-06
    Barbarazhao
    Hopefully it will reach 3000 per share 
  • ZEROHERO
    2021-09-06
    ZEROHERO
    Elon is usually too optimistic. Give him 1-2 year delay to reach 3000, but we will get there eventually!
  • Juvie
    2021-09-06
    Juvie
    why not
  • Abc123
    2021-09-06
    Abc123
    Wjwoske
  • Roarhigher
    2021-09-06
    Roarhigher
    Wow
Leave a comment
10