Loup Ventures' Gene Munster believes Tesla (NASDAQ: TSLA) can become a $2.5 trillion company and can grow its revenue from $70 billion to $400 billion over the next five years.
Managing Partner Loup Ventures Gene Munster said in an interview with CNBC on Friday that Tesla could become a $2.5 trillion company, suggesting significant further growth from the $1 trillion current valuation the company hit for the first time earlier this week.
"I think there's still room for upside with Tesla. I think we're going to be a conversation for years to come."
Munster believes Tesla can increase its revenue from $70 billion to $400 billion over the next five years. If one were to apply an "Apple-like multiple" of 6.5 times sales to the manufacturer, it would equate a $2,500 stock price, which in turn would bring the company a market capitalization of $2.5 trillion.
The analyst recognizes the challenges in the broader automotive industry with the production of EVs. He noted that some legacy auto manufacturers have been in the market for about 100 years, yet may be left behind. Nonetheless, they can and should try to keep up with innovators like Tesla.
"I think you will see some companies that have been around for 100 years that will be a fraction of what they are in a decade."
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.