Ark Funding Administration founder Catherine Wooden informed CNBC on Tuesday that she believes Tesla may very well be price greater than $6,000 per share within the subsequent 5 years.
That is up from the final time her agency ran its mannequin, she mentioned, including a newer run might yield a good increased goal.
“Keep tuned,” she mentioned on “Squawk Alley” of the upcoming five-year time horizon projection.
Underlying this bullish view is a perception that Tesla won’t lose its appreciable share of the electrical car market, Wooden mentioned.
Initially, Wooden mentioned she thought Tesla would lose about one-third of its 17% market share final 12 months.
“As we’re different auto firms, seeing how far behind Tesla they’re, we’re starting to consider they won’t lose market share, which is a large change in our assumptions,” Wooden mentioned.
Wooden first predicted in February 2018 that Tesla would sooner or later commerce at $4,000 per share.
Based mostly on 180 million shares excellent, Tesla over $6,000 would put the electrical auto maker firmly within the $1 trillion inventory market worth membership. At present, Tesla’s market cap is approaching $100 million.
Tesla’s inventory hit one other all-time excessive Tuesday, after electric-vehicle maker sprinted greater than 9% increased Monday to over $500. Shares have soared practically 30% in 2020 and greater than doubled since late September.
Oppenheimer analyst Colin Rusch on Monday grew to become the biggest Tesla bull among traditional Wall Street firms, when he raised his worth goal on the inventory by practically 60% to $612 per share.