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Elon Musk told employees he agreed with Ark Invest that Tesla (TSLA) was worth $ 3,000 a share “if they perform really well.”
The CEO often commented on Tesla’s stock price, but surprisingly, that was often to say the price was too high.
In 2020, as Tesla’s stock rose to a new high, Musk told his millions of Twitter followers that he thought the stock was “too high.”
That caused Tesla’s shares to collapse, but now it’s even higher than when Musk made the comment.
Tesla is currently trading at $ 733 a share and the automaker is the world’s most valuable automaker with more than $ 730 billion.
Wall Street companies are divided on whether or not the company is overvalued, but a few believe Tesla could be worth a lot more.
Ark Invest is one of them.
Although to be fair, the company is also a major shareholder of Tesla through its investment funds.
This week, they released a new note claiming a base price target of $ 3,000 by 2025 for Tesla.
Cathie Wood said of the price target in an interview with Yahoo Finance:
“Our estimate of Tesla’s success has increased. The main reason for this is their market share. Instead of falling from the end of 2017 to today, it has actually increased quite dramatically ”,
In its valuation models, Ark Invest estimates that Tesla will deliver between 5 and 10 million vehicles by 2025.
That’s a big ramp considering Tesla will likely deliver less than a million vehicles this year.
The company is also betting on Tesla providing a completely self-sustaining ridesharing network, known as the Tesla Network, which will bring in a lot of money with a high margin.
In an email to a Tesla employee obtained by Electrek, Elon Musk shared with employees Ark’s new $ 3,000 price target and that he agrees with Ark:
“If we are performing really well, I agree with Ark Invest.”
A stock price of $ 3,000 would put Tesla’s valuation at $ 3 trillion and make it the most valuable company in the world.
Taking Electek
Considering that Ark’s new rating was an update to their pricing model and target price, it’s fair to say that Musk’s email is essentially a direct commentary on the price of the l Tesla share.
He thinks that “if executed really well,” Tesla should be worth $ 3 trillion in the next 4 years.
To be fair, this is a longer price target than most, but it’s still rare for Musk to comment positively on the stock price.
I remember Musk just a few years ago telling employees to “ignore the stock price.”
Now he’s literally sending them a share price email. What changed?
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