Kathleen Wood, founder and chief executive of Ark Investment Management, said Monday that she expects Tesla’s share price to double by 2024 in a worst-case scenario. Wood owns a significant stake in Tesla. “In a worst-case scenario, our five-year target price is $700,” she says, “and that’s if they lose two-thirds of their market share and don’t have self-driving cars.” “
Mr Wood said Tesla now accounts for about 17 per cent of global electric car sales.
Tesla’s shares closed Friday at $335.89 a share. In a tumultuous year, the company’s share price fell below $200 in June before rebounding to a nearly 1 percent gain in 2019. By contrast, the Standard and Poor’s 500 index is up 25 percent this year.
Wood first predicted in February 2018 that Tesla would one day trade for $4,000 a share, meaning tesla would have a market capitalisation of $720 billion. As of Friday’s close, Tesla had a market capitalisation of $60.5 billion.
Wood’s views stand in stark contrast to many of tesla’s shorts. Shorters believe Tesla’s share price could plummet.
Morgan Stanley cut its worst-case forecast for Tesla’s share price to $10 in May from $97, citing concerns about the company’s geopolitical exposure and rising debt burden.
Last week, however, Morgan Stanley raised its Tesla target price to $500 a share.
“It needs to be clear that we are not optimistic about Tesla’s long-term prospects, especially over time,” Morgan Stanley analyst Adam Jonas said in a note to clients last week.
“I think they’re ignoring a lot of realities,” Mr. Wood told Wall Street’s bearish commentators on Monday, such as Tesla’s record in self-driving technology.