Cathie Wood's Ark expects Tesla stock to reach $3000 by 2025

FILE PHOTO: A man wearing a face mask following the coronavirus disease (COVID-19) outbreak walks by Tesla Model 3 sedans and Tesla Model X sport utility vehicle at a new Tesla showroom in Shanghai, China May 8, 2020. REUTERS/Yilei Sun/File Photo

(Reuters) – Cathie Wood’s Ark Invest said it expects Tesla Inc’s share price to reach the $3,000 mark by 2025.

Ark expects Tesla’s market capitalization to reach as high as $4 trillion in the best-case scenario, according to a research note published here on Friday.

The investment management firm set the price target for Tesla at $1,500 per share on a bear basis by 2025 and $4,000 per share on a bull basis.

Last year, Ark Invest said it expected the company’s stock to hit $7,000 per share, or $1,400 when adjusted for its five-for-one stock split, by 2024.

From last year, when Ark published its previous note on Jan. 31, 2020, Tesla’s stock rose as much as 400% to $654.87 as of Friday’s close.

Ark Invest also increased the probability of the electric car maker achieving fully autonomous driving within five years, and said the company’s net autonomous ride-hail revenue could be as much as $327 billion by 2025. It expects Tesla’s electric vehicle revenue to reach between $234 billion and $367 billion by 2025.

Tesla is the largest holding of the high-flying $26.6 billion ARK Innovation exchange-traded fund and fund operator Wood, Ark’s chief executive, has been a longtime Tesla bull.

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