(Bloomberg) -- Cathie Wood’s Ark Invest Management expects Tesla Inc. stock to hit $3,000 by 2025, up from its current price of $655. At that price, the company would be worth almost $3 trillion, based on the number of shares outstanding.
Ark expects there’s a 50% chance of Tesla achieving fully autonomous driving within five years, which could allow the company to scale its planned robotaxi service quickly, according to a Friday note on Ark’s website.
It also added Tesla’s insurance business into its model, believing the offering could be rolled out to more states in the next few years with better-than-average margins, thanks to “highly detailed driving data” the company collects.
Wood has been among Tesla’s most ardent supporters, holding large stakes of the company in her flagship fund. When Tesla shares saw a pullback in February, she bought more.
The $3,000 target is by far the highest among analysts who cover the company, according to data compiled by Bloomberg.
According to Ark’s new model, in the best case scenario, Tesla could reach $4,000 per share in 2025, and in the bear case, $1,500. The company forecasts Tesla’s unit sales to be between 5 million and 10 million vehicles in 2025, assuming increased capital efficiency.
The model didn’t incorporate Tesla’s utility energy storage or solar business, nor did it consider future price fluctuations for Tesla’s Bitcoin holdings.
Barron’s reported the price target earlier.