Catherine Wood, CEO of ARK Investment Management, has had an impressive 2020, with several of her company’s best-performing ETFs. One of her best moments for 2021 possibly took place this week with a 2018 call coming up.
What happened: Wood has a bullish bet on Tesla Ing (NASDAQ: TSLA) in February 2018, calling for shares to reach $ 4,000.
Taking into account a five-to-one split in August 2020, the stock hit $ 800 on Thursday, reaching Wood’s original price target.
Wood said the case on Tesla’s shares fetched $ 600, which would still be a double price of the then price.
‘If we are right, this stock in our models will amount to $ 4,000. “If we’re wrong, and all they do is electric, then our suitcase is $ 600, ‘Wood said at the time.
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Why it’s important: Tesla is a leading stake in Wood’s ARK ETFs and has helped the fund rank among the top performers.
Wood had the highest price target at the time and was interviewed because he was tesla on Tesla, but played behind her high conviction by holding shares. At the time, the highest price target on Tesla was $ 500 per share, meaning Wood was twice as high as its target.
Even in 2020, analysts and investors are trying to decide whether Tesla is a car company or a play on energy and car or a technology company.
“The future is transport as a service, software as a service. This is where Tesla is going, ”Wood said in 2018.
Given the debate today and the valuation for Tesla, it could be that Wood failed with this call.
What’s next: Wood became even stronger in February 2020, releasing a new bullet issue for Tesla shares to reach $ 7,000 by 2024.
Wood’s split adjusted target price of $ 1,400 is based on the fact that Tesla is approaching 40% gross margins, improving capital efficiency through the scale of production and the development of autonomous capabilities and the penetration of autonomous taxi services.
Wood gives the $ 1,400 price target a chance to succeed. The $ 300 carrier business is based on 3.2 million cars sold in 2024 and has a 25% chance.
In the bull case for Tesla of Wood, the shares of Tesla see $ 3,000.
TSLA Price Action: Shares in Tesla rose 7.8% on Friday to $ 880.02.
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