Elon Musk says Tesla (TSLA) is worth $3,000 a share ‘if they execute really well’

[F-22Raptor]

Elon Musk told employees that he agrees with Ark Invest that Tesla (TSLA) is worth $3,000 a share “if they execute really well.”


The CEO has often commented on Tesla’s stock price, but surprisingly, it was often to say that the price was too high.

In 2020, when Tesla’s stock was reaching new high, Musk told his millions of followers on Twitters that he believed the stock was “too high”.

It sent Tesla’s stock crashing, but now it is even higher than when Musk made the comment.

Tesla is currently trading at $733 a share and the automaker is the most valuable automotive company in the world at over $730 billion.

Wall Street firms are divided on whether or not the company is overvalued, but a few of them believe that Tesla could be worth a lot more.

Ark Invest is one of them.

Though to be fair, the company is also a large Tesla shareholders through its investment funds.

This week, they released a new note claiming a $3,000 base stock price target by 2025 for Tesla.

Cathie Wood said about the price target during an interview with Yahoo Finance:

“Our estimate for Tesla’s success has gone up. The main reason for that is their market share. Instead of going down from year-end 2017 to today, it has actually gone up fairly dramatically,”

In its valuation models, Ark Invest believes that Tesla is going to deliver between 5 and 10 million vehicles as soon as 2025.

That’s a significant ramp considering Tesla likely will deliver less than 1 million vehicles this year.

The firm is also betting on Tesla delivering a completely autonomous ride-hailing network, known as Tesla Network, that is going to bring in a lot of money with high margin.

In an email to Tesla employee obtained by Electrek, Elon Musk shared with employees Ark’s new $3,000 price target and that he agrees with Ark:

“If we execute really well, I agree with Ark Invest.”

A $3,000 share price would put Tesla’s valuation at $3 trillion and make it the most valuable company in the world.

Electrek’s Take
Since Ark’s new note was an update on their valuation model and price target, it is fair to say that Musk’s email is basically a direct comment on Tesla’s stock price.

He believes that “if executed really well”, Tesla should be worth $3 trillion within the next 4 years.

To be fair, that’s a longer price target timeline than most, but it’s still rare that Musk comments on the stock price positively.


I remember Musk just a few years ago telling employees to “ignore the stock price“.

Now he is literally sending them an email about the stock price. What changed?

https://electrek.co/2021/09/04/elon-musk-tesla-tsla-worth-3000-share/
This $3k price target by Ark Invest is by 2025 as well.

 

[Hamartia Antidote]

Certainly if he gets the self-driving and automatic charging working he will corner the developed world's taxi market.

 

[F-22Raptor]

Certainly if he gets the self-driving and automatic charging working he will corner the developed world's taxi market.

Tesla will 10x again by the end of the decade IMO.

 

[UKBengali]

Certainly if he gets the self-driving and automatic charging working he will corner the developed world's taxi market.

Do you really think this is remotely feasible this decade?

AI Taxis will require almost human levels of intelligence and there will need to be a lot of new infrastructure put in to allow this to work like making towns and cities less cluttered with obstacles that will confuse the cars software. We are very far away from this despite what Musk thinks.

This is something that may happen from 2050 onwards and we need to be realistic about our expectations.

 

[Hamartia Antidote]

Do you really think this is remotely feasible this decade?

AI Taxis will require almost human levels of intelligence and there will need to be a lot of new infrastructure put in to allow this to work like making towns and cities less cluttered with obstacles that will confuse the cars software. We are very far away from this despite what Musk thinks.

This is something that may happen from 2050 onwards and we need to be realistic about our expectations.

He's using the same strategy as DeepMind did with AlphaGo and then the incredible AlphaGo Zero.

 

[Falconless]

They need to up their production quality and quantity drastically

 

[UKBengali]

He's using the same strategy as DeepMind did with AlphaGo and then the incredible AlphaGo Zero.

Yes but they are nowhere near to replicate human levels of intelligence even for driving cars safely around urban areas. It would have to be at least as safe as human drivers before AI driven taxis will even be considered and probably considerably more so.

AI Highway driving without pedestrians and obstacles on roads is ok for now but anything else will require enormous advancements in AI technology for another generation. If Tesla can get that working reliably and safely this decade then this will be a good achievement.

 

[Hamartia Antidote]

Tesla will 10x again by the end of the decade IMO.

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