Despite the Corona epidemic, the wealth of many businessmen around the world increased greatly and one reason for this was the rise in the stock of their companies. The shares of Tesla, the company of the world’s second richest man Elon Musk, have risen by 671 per cent in the last one year and are currently priced at US $ 670 per share (Rs 48,544.38). The pace of Tesla’s shares is not going to stop here, but according to Kathy Wood’s ARK Invest, in the next four years, by 2025, its price can rise by 347 percent to reach $ 3,000 (Rs 2,17,362.90) per share.
However, Tesla’s stock price has declined this year. So far this year in 2021, its price has fallen by 8 percent and it is underperforming the NASDAQ Composite Index. Kathy Wood’s ARK did not agree with Bitcoin in her estimation. Tesla has purchased $ 150 million worth of bitcoin and ARK has not included in its estimation what effect it will have on the stock price.
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Tesla shares can rise on this basis
- In a post on the website of ARK Invest, it is estimated that Tesla’s shares in the base cinerea can touch the level of 3 thousand dollars by 2025. According to ARK Invest, there is a 25 per cent probability (beer case) that its price will remain low as expected and can reach only $ 1500. In the bull case, the target for Tesla’s stock has been kept at 4 thousand dollars per share. ARK Invest in Base Case Scenario estimates that Tesla will sell 5 million cars and Bull Case will sell 10 million cars.
- ARK Investment Management LLC estimates that it has a 50 per cent probability that Tesla will begin delivery of a fully automated car in the next five years. ARK believes that Robotaxis is going to become reality soon. If Tesla is successful in this, the company will allocate additional cash to increase its manufacturing capacity. According to the estimate, if the company also equipped 60 percent of its vehicles with autopilot, then Tesla will generate an additional 16 thousand million dollars in 2025 under EBITDA (Earnings before Interest Tax Depreciation Amortization).
- ARK has speculated in the beer case that the company may launch such cars in preparation for the robotaxi service which requires a human driver. This will increase the company’s profit and increase its price target by an additional $ 500. This means that if the company is not able to start autonomous service, then the decline in revenue will stop the Human Drive Ride-Hell network and the target for the company’s share price will increase by $ 500.