Virgin Galactic Holdings Ing (NYSE: SPCE) Chairman and SPAC King Chamath Palihapitiya said on Thursday that Tesla Inc. (NASDAQ: TSLA) could double or triple the stock from here.
What happened: The billionaire investor dished out the advice on CNBC’s Halftime show, saying he could not understand “why people are so focused on selling things that work.”
Palihapitiya described Tesla CEO Eles Musk as a “guy who was consistently one of the most important entrepreneurs in the world.”
He urged investors to get behind Musk, Jeff Bezos, the CEO of Amazon.com, Inc. (NASDAQ: AMZN), and Anthony Noto, CEO of SoFi.
See also: SoFi merges with Palihapitiya-backed IPOE SPAC
‘You find out these people who [an] “Incredibly strong character, who knows what they are doing that will not bend for short-term gains, and will only travel by train for 10 or 20 years and make the world a better place,” said Palihapitiya.
The previous Facebook Inc. (NASDAQ: FB) CEO pointed to fellow venture capitalist Bill Gurley of Benchmark, who has an excellent expression: “if the music has to dance on you.”
‘So these guys are dancing, they’re in a rhythm, they’re walking, they’re doing their thing. Get behind them, do not sell a share, but let them create value, ‘Palihapitiya said.
Why it matters: Palihapitiya reiterated his thesis that Tesla is a disruptive enterprise whose primary value is about ‘deregulating energy’ and not just being a carmaker.
The investment guru made a “fairly large” investment in Tesla in 2016 and said Tesla would become a trillion-dollar company on the scale of Apple Inc. (NASDAQ: AAPL).
Price action: Tesla shares closed nearly 7.9% higher at $ 816.04 on Thursday and rose 1.65% to $ 829.50 in the after-hours session. Virgin Galactic shares rose 3.97% to $ 25.13 and rose 0.68% in the after-hours session the same day.
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