Days after asset management firm Ark Invest estimated electric vehicle maker Tesla to reach a base stock price of $3,000 in the next few years, company's founder Elon Musk told his employees that the target is achievable if the execution is right.
Tesla is worth $3,000 a share "if they execute really well", Electrek reported Musk as saying on September 4, adding that the billionaire "agrees with Ark Invest".
Ark Invest, in its note released earlier this week, said Tesla would reach the base stock price of $3,000 by 2025.
Ark Invest believes that Tesla is going to deliver between 5 and 10 million vehicles as soon as 2025. The New York-based investment manager also claimed, citing its valuation model, that Tesla will deliver between 5 and 10 million vehicles as soon as 2025.
Also Read | 'Big Short' Michael Burry raises bet against Tesla; shorts Cathie Wood's Ark Invest
If the company ends up scaling its production as estimated above, it would be a significant ramp-up, considering that Tesla is likely to deliver less than 1 million vehicles this year, the report said.
Ark Invest is also betting on the successful delivery of Tesla Network -- the company's completely autonomous ride-hailing network, which is expected to generate significant revenue with a high-profit margin.
Musk is known for commenting on Tesla's stock price, but surprisingly, he has, at times, indicated that the shares were overvalued. In 2020, when the company's shares had peaked to a new high, Musk ended up hurting the prices as he commented on Twitter that the rate was "too high".
Notably, Tesla's stock price is currently higher than when Musk had made the remark last year which sent the prices crashing down. The company's shares are trading at around $733 and the company is being valued at over $730 billion.n
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
