Cathie Wood's ARK More Than Doubles Tesla (TSLA) Price Target to $3,000

March 22, 2021 6:54 AM EDT
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Cathie Wood's ARK Investment raised its price target on Tesla (NASDAQ: TSLA) to $3,000 from $1,400, in a report over the weekend. They expect shares to reach this new target by 2025.

To arrive at this forecast, ARK used a "Monte Carlo" model with 34 inputs, the high and low forecasts incorporating 40,000 possible simulations.

The firm's Bull Case is $4,000, while the Bear Case is $1,500.

Under the Bull Case, ARK estimates Tesla will sell 10 million cars in 2025 at an average selling price of $36,000, which will produce revenue of $367 billion from EV sales. In addition, under the bull case the company will have Autonomous Ride-Hail revenue of $327 billion. Total Gross Margin would be 50%, while Total EBITDA Margin would be 30%. The market cap of Tesla under the bull case would be $4 Trillion.

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