Catherine Wood, ARK Invest CEO Tesla's biggest bull. She registered ARK Investment Management as an investment adviser with the U.S. Securities and Exchange Commission in January 2014. Wood is known in investment circles for her bullish calls on Tesla Inc. But she thinks about many different companies. ARK calls five key “innovation platforms,” technological innovations centered around genome sequencing, robotics, artificial intelligence, energy storage, and blockchain technology.
Wood told CNBC today that she estimates Tesla could be worth more than $6,000 per share over the next five years.
“As we’re looking at other auto companies, seeing how far behind Tesla they are, we’re beginning to believe they might not lose market share, which is a huge change in our assumptions,” she said.
Wood first predicted in February 2018 that one day Tesla would trade at $4,000 a share, which means a market value of 720 billion dollars. Tesla's market capitalization is currently approaching $100 billion.
Source: CNBC/Catherine Wood, ARK Invest CEO
According to Wood, Tesla is a dominant player in this evolving technology space. The company's fleet consists of almost 700,000 vehicles, which, according to her, are already collecting data. She said that developing and deploying a Tesla autonomous taxi fleet could lead to software costing around 80%, which, in her opinion, could support a stock price of around $6,000.
Autonomous vehicles will be a driver going forward, with Tesla, in her view, positioned to be the dominant player. “The winner in autonomous platforms, and in any artificial intelligence project, is that company with the most data and the highest-quality data,” she said. “That company is Tesla.”
Tesla shares hit another record high on Tuesday, almost $550 per share. Shares rose about 30% in 2020 and more than doubled from late September.
On Monday, Oppenheimer analyst Colin Rusch raised his target stock price by nearly 60% to $612 per share. And today, Jefferies analyst Philippe Houchois raised his price target for Tesla to $600 from $400 and keeps a buy rating on the shares.
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Featured image: CNBC