Tasha Keeney, an analyst at Ark Investment Management, said today that Tesla’s share price is expected to reach $6,000 a share over the next five years. That means Tesla’s share price could rise more than 10 times from Wednesday’s close.
If it reaches $6,000 a share, Tesla’s market capitalisation would exceed $1 trillion. Tesla’s market capitalisation is currently about $90 billion, nearly $5 billion more than gm and Ford combined.
“This expectation is based on our most optimistic assumptions about the electric vehicle market,” Mr Keeney said. Our assumptions have also changed over the past few years. We’ve always said that Tesla is three years ahead of the curve in battery, self-driving hardware and automated data collection. Today, we take software and in-flight software upgrades into account. “
Mr Keeney added: “What is shocking is what we are seeing is that the rest of the car market is really lagging far behind Tesla. Other carmakers, for example, have yet to produce an electric car comparable to the Model S that came out seven to eight years ago. So in all ways, we’ll see Tesla lead by. “
In fact, Mr Keeney’s views reflect those of other Wall Street investment banks. The investment banks recently pointed out that the vast amount of data Tesla collects will be the starting point for its future automation. For example, Colin Rusch, an analyst at Oppenheimer, an investment bank, recently raised Tesla’s target price to $612 from $385.
Today, Morgan Stanley raised Its Tesla target to $360 from $250. Tesla’s shares closed at $518.5 on Wednesday. Mr. Keeney also expects Tesla to launch a self-driving taxi service in the coming years.