Tesla’s price surged about 6.5 percent the day Ark Invest’s Cathie Wood raised her price target, though Wood recently said she wouldn’t hesitate to sell if it reached the $3,000 per share target.
On Wednesday at a news briefing, Wood said she would sell Tesla stock if it reached $3,000 by next year, according to Bloomberg. The price equals that of Wood’s five-year base price target, while Tesla’s shares are currently trading at around $750 – prior to hitting an all-time high of $900 earlier this year.
At the briefing, which took place following a session at Morningstar Investment Conference, Wood said, “If nothing were to change in our outlook and we got to $3,000 next year, my guess is that we would be peeling out of it.”
Samsung to Make Tesla’s Next HW 4.0 Self-Driving Chip: Report https://t.co/0h6KDPfXM2
— TeslaNorth.com (@RealTeslaNorth) September 23, 2021
The quote came during a debate with investor and Tesla bull Rob Arnott, following both of their appearances on a panel during the conference session.
While Arnott has remained skeptical of high-value growth stocks like Tesla, Wood defended the company’s shares saying that the average price of an electric vehicle (EV) will drop below that of gas-powered cars in the next year or so, continuing into 2025. This, Wood explained, is a natural trajectory following recent drops in the prices of EV battery packs.
Wood predicts the average electric vehicle to cost $18,000 while a regular gasoline car will be roughly $25,000 to $26,000 in 2025.
Tesla remains ARK Invest’s biggest holding, and despite selling off some of the automaker’s shares this month, the firm remains bullish on the company’s outlook as leader of the EV space.