Friday, Tesla’s stock price ended the day at $329.94 per share. On June 3, 2019 Tesla’s stock was $178.97. Friday’s price represents an 84% stock price gain since June 3. In October of this year, Ark Investment founder and CEO, Katherine Wood, predicted a rise in Tesla stock to $4,000. Even Ark’s bear case has Tesla going to $700. Wood believes analysts following Tesla don’t know how to value it. She believes most analysts see Tesla exclusively as only an auto stock or a tech stock. Ark believes Tesla is a tech-auto-battery-utility hybrid company. To value Tesla, Ark uses analysts with experience in robotics, energy storage, artificial intelligence, and transportation-as-a-service. Ark also bakes into their $4,000 price target Musk’s belief that Tesla’s self -driving capability will lift the business to $500 billion.
It seems to me that Tesla is something more than just an auto company or a tech company. While I can’t predict a $4,000 stock price. Elon Musk’s investments in the traditional auto business, his EV exclusive focus, autonomous vehicle systems development, and a potential mobility business launch requires a different kind of stock valuation analysis.