Ardent Tesla supporter Cathie Wood expects electric carmaker’s shares to hit US$3,000 by 2025

Ark rates Tesla’s chances of achieving fully autonomous driving within five years at 50 per cent, which could provide a boost to its planned robotaxi service

According to Ark Invest Management’s new model, in the best case scenario, Tesla could reach US$4,000 per share in 2025, and in the bear case, US$1,500

2-MIN READ2-MIN

Tesla shares rose more than 740 per cent last year, the best performance on the S&P 500. Photo: AP Photo

Published: 1:55pm, 21 Mar 2021Updated: 1:55pm, 21 Mar 2021

Cathie Wood’s Ark Invest Management expects Tesla stock to hit US$3,000 by 2025, up from its current price of US$655. At that price, the company would be worth almost US$3 trillion, based on the number of shares outstanding.

Ark expects there is a 50 per cent chance of Tesla achieving fully autonomous driving within five years, which could allow the company to scale its planned robotaxi service quickly, according to a Friday note on Ark’s website.

It also added Tesla’s insurance business into its model, believing the offering could be rolled out to more states in the next few years with better-than-average margins, thanks to “highly detailed driving data” the company collects.

Wood has been among Tesla’s most ardent supporters, holding large stakes of the company in her flagship fund. When Tesla shares saw a pullback in February, she bought more.

Cathie Wood’s Ark Investment Management holds large stakes of Tesla in her flagship fund. Photo: Bloomberg

According to Ark’s new model, in the best case scenario, Tesla could reach US$4,000 per share in 2025, and in the bear case, US$1,500. The company forecasts Tesla’s unit sales to be between five million and 10 million vehicles in 2025, assuming increased capital efficiency.