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Investing.com – Tesla (NASDAQ:TSLA) was up 3% in premarket trading Wednesday, fueled by Cathie Wood’s Ark Investment saying that the stock could reach $3,000 by 2025.
Wood’s views on Tesla carry weight on the street given the close alignment between her investment strategy and the exuberant retail investing crowd that drove the rally in the stock over the last two years. Ark had earlier set a $2,400 target on the electric vehicle maker’s share price with a 2024-time horizon.
In a bear and bull case scenario, Ark sees Tesla at $1,400 and $4,000 per share extremes, respectively.
Tesla remains the largest holding for Ark Invest across all of its ETFs, representing over 10% of total assets.
The price target factors in expectations that Tesla will launch an autonomous robotaxi service, which Ark believes could bring in revenues of as much as $327 billion. It also incorporates Tesla’s relatively new insurance business, but doesn’t include its energy storage and solar business, nor its $1.5 billion investment in Bitcoin made in January.
