ARK Invest CEO’s Tesla Stock Prediction Comes True 2 Years Early
According to Markets Insider, ARK Invest founder and CEO Cathie Wood’s 2023 stock predictions for the electric vehicle (EV) maker two has come true two years ahead of time.
Back in 2018, when Tesla was having trouble scaling up production of its Model 3 to meet demand and battling liquidity issues left and right, Cathie Wood predicted that the company’s stock price would hit $4,000 USD by 2023.
At the time, Tesla’s stock was trading at $300 USD per share. Predicting a growth of 1,200% in 5 years for a company that some believed to be on the verge of bankruptcy raised many an eyebrow, but Wood firmly stood by her call.
By end of trading on Thursday, Tesla stock was sitting pretty at a price of $816 USD per share. Adjusting for the 5-to-1 stock split last year gives Tesla a split-adjusted share price of $4,080 USD, comfortably materializing Wood’s predictions for the company with two years to spare.
The current climb of Tesla’s share price is fueled by the company’s addition to the S&P 500 index last month, the EV maker’s achievement of over 500,000 cars produced in 2020, and anticipation of new products and upcoming growth in production capacity.
In light of Tesla’s head-spinning performance and the growing demand for electric vehicles around the globe, ARK Invest has updated its predictions for Tesla to $7,000 USD per share (pre-stock split) by 2024, expecting a growth of over 70%.
“Based on our updated expectations for electric vehicle (EV) cost declines and demand, as well as our estimates for the potential profitability of robotaxis, our 2024 expected value per share for TSLA is $7,000,” said ARK analyst Sam Korus last year.