Tesla Surges 6.5% After Cathie Wood Raises Price Target to $3,000
Investing firm Ark Invest has offered a lot of confidence for the direction of Tesla’s business, and in a new update released on Friday, the firm has further increased its praise of the automaker’s future.
Tesla (TSLA) shares rose 6.5% Monday, following news that Ark Invest’s Cathie Wood raised Tesla’s price target to $3,000 (USD) by 2025, and citing expectations that the company will launch an autonomous robotaxi service.
The firm predicts the service could raise up to $327 billion in revenue for Tesla, which explains the ambitious rise from Ark Invest’s previous target of $1,400 – an already-bullish target which would give Tesla a valuation of nearly $3 trillion.
As was reported late last year, Wood also believes that Tesla could start a robotaxi system with a human ride-sharing service first, with which it could kick-start the service and begin generating revenue until the company’s Full Self-Driving technology becomes advanced enough to have driverless taxis.
As Ark Invest explained, “In preparation for its robotaxi service, Tesla could launch a human-driven ride-hail network first, delivering a highly profitable recurring revenue stream and limiting the downside of a failed autonomous service.”
Wood’s prior predictions were praised by other investors for their impressive accuracy on Tesla’s stock, including a 2018 report which predicted Tesla would hit $4,000 when traded at a split-adjusted price of about $250 by 2023. In early 2021, the stock went on to trade at a split-adjusted price of $4,500 – two years ahead of Wood’s original prediction.
At the time of writing, Tesla’s (TSLA) shares are trading for $697.60, up 6.52% from Monday’s open.