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Apple, Microsoft and… Tesla?
Ark Investment founder Catherine Wood told CNBC Tuesday she sees Tesla TSLA, +2.49% surging to $6,000 within five years, a move that would put the electric-car maker in the rarified air of those other trillion-dollar companies. Right now, Tesla sits below the $100-billion in market cap.
“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, pointing out that market share was a concern when she first predicted in February 2018 that Tesla would reach $4,000.
Autonomous vehicles will also be a big driver going forward, with Tesla, in her view, positioned to be the dominant player in the space. “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.”
Watch the interview:
The stock clearly has a long way to go, but it’s been on fire lately. Shares, which have more than doubled since September, took out another record high in Tuesday’s session and were up 3.3% to $542.14, at last check.
Meanwhile, Wall Street continues to scramble to raise price targets. Analysts at Deutsche Bank just set their target at $455 from $290, a 57% increase. Unlike Wood, however, they are worried that “investor sentiment has gotten bullish too fast, ignoring some of the nearer-term execution risks.”
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