Following Tesla CEO Elon Musk’s decision to exercise options and sell shares, one bullish investor is emphasizing how dominant the electric automaker could become over the next half of a decade.
In a virtual interview on Wednesday, Ark Invest CEO and Founder Cathie Wood thinks Tesla could own 20 to 25 percent of market share in the automotive industry in five years, according to Barron’s, should the company’s Full Self-Driving see first success in the U.S. when it comes to autonomy.
In the interview, Wood said, “If Tesla is the first to be successful in autonomous in the United States, we’re beginning to believe that not only will Tesla take that biggest share of the electric vehicle market, we believe that it could take 20% to 25% share of the total auto market in five years.”
Cathie Wood’s Ark Invest to Launch Space Exploration ETF on Tuesday https://t.co/QW1MtU1bdm
— TeslaNorth.com (@RealTeslaNorth) March 29, 2021
Wood’s portfolios grew significantly in 2020, after notably picking out forward-thinking companies like Tesla, landing a 153 percent return on the year – despite facing a lull in growth throughout much of 2021.
Wood also holds a price target of $3,000 by 2025, which would theoretically equate to such a high portion of auto market share.
In September, Wood stated she would sell Tesla’s stock if it hit $3,000 in 2022, since that’s her current five-year base price target.
At the time of writing, Tesla’s shares are selling for $1,101.34, up 1.13 percent from Thursday at market open.
