Cathie Wood’s Ark has a new price target for Tesla: $ 3000

Cathie Wood’s Arkie Management expects the stake in Tesla Inc. $ 20,000 by 2025, compared to the current price of $ 655. At that price, the company would be worth nearly $ 3 billion, based on the number of shares outstanding.

Ark expects a 50% chance of Tesla’s full autonomous management within five years, which will enable the company to quickly expand its planned robotic action service, according to a Friday note on Ark’s website.

It also added Tesla’s insurance business to its model, believing that the offer could be applied to more states by more than average margins in the next few years, thanks to ‘very detailed management data’ the company collects.

Wood was one of Tesla’s most ardent supporters and held large interests of the company in its flagship fund. When Tesla shares fell in February, she bought more.

According to Ark’s new model, Tesla could reach $ 20,000 per share in 2025 at best, and $ 1,500 at best. The company predicts that Tesla’s unit sales in 2025 will be between 5 million and 10 million vehicles, assuming it has increased capital efficiency.

The $ 3000 target is far “/>higher than any analyst covering the company, the highest of which is $ 1,200 among estimates compiled by Bloomberg. Driven by avid fans, Tesla shares rose more than 740% last year, the best performance on the S&P 500. Elon Musk, its chief executive officer, became the richest person in the world in January, before Jeff Bezos regained the title.

Not close

Analysts have speculated about the prospect of Tesla launching a robotic taxi service since at least 2015, but there is little indication that the technology will make this possible any time soon. Tesla recently told California authorities that human drivers will have to constantly oversee a new city streets feature in the series of “complete self-driving” features sold as part of the Autopilot package.

As for the company’s insurance product, it started in August 2019 and is currently only available in California. The company includes car insurance revenue in its “services and other” category, along with after-sales service, used vehicle sales and retail goods. Last year all the cases were together 7% of total revenue.

Ark’s model does not include Tesla’s energy storage or solar power business, nor does it include future price fluctuations for Tesla’s. Bitcoin holdings.

Barron’s reported the price target earlier.

– With help by Craig Trudell

(Updates with continuous background)

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