Back in March, ARK Invest announced a 2025 price target of $3,000 USD for electric vehicle (EV) pioneer Tesla. Following a detailed Monte Carlo analysis, the investment firm shared a base case of $3,000 USD, a bear case of $1,500 USD, and a bull case of $4,000 USD for Tesla stock in 2025.
In a recent interview with Yahoo Finance Live, ARK Invest founder, CEO, and CIO Cathie Wood stood by and reiterated the firm’s base price target of $3,000 USD for Tesla — reports Yahoo Finance.
“Our estimate for Tesla’s success has gone up. The main reason for that is their market share. Instead of going down from year-end 2017 to today, it has actually gone up fairly dramatically,” explained Wood.
ARK Invest has historically remained bullish on Tesla, and has been rewarded handsomely for its faith. The firm appears comfortable with its current position despite an imminent onslaught of all-electric offerings from veteran automakers like Ford, Toyota, and General Motors, as well as upstarts like Rivian and Nio.
A number of ARK Invest’s innovation-focused Exchange Traded Funds (ETFs) feature Tesla as their top holding. For instance, Tesla accounts for 10.49% of the firm’s flagship fund, the ARK Innovation ETF, and is its top holding.
Wood is confident in her firm’s evaluation of Tesla’s potential, with growing global demand for EVs, a promising Chinese market, and opportunities in the ridesharing space backing it up.
The Ark Invest CEO also noted that the industry’s biggest players scrambling to develop all-electric portfolios only serves to substantiate Tesla’s business plan and market strategies.
