Elon Musk has told Tesla employees that he completely agrees with a recent price prediction from investment management firm Ark Invest. The New York-based company gave Tesla a $3,000 price target for 2025, believing by then the automaker will be delivering between 5 and 10 million vehicles per annum. This is a sharp rise from the 499,550 vehicles Tesla delivered in 2020, and would place Tesla right amongst the automotive elite in terms of mass-production.
Tesla stock currently trades at $733 a share. The stock has risen by over 1,700% in the last five years, with 2020 in particular being a remarkable year for Tesla’s share price. Tesla is by far the world’s most valuable automaker with a market cap of over $730 billion. If Tesla stock rose to $3,000 a share, by today’s standards it would make it by far the most valuable company on earth, worth around $3 trillion.
As well as future production targets, Ark Invest’s high valuation is also due to their belief in the Tesla Network. They reckon Tesla will succeed in delivering a totally autonomous ride-hailing network that will bring high profit margins.
In an email obtained by Electrek, Elon Musk gave his view on Ark Invest’s $3,000 price target to Tesla employees, stating “if we execute really well, I agree with Ark Invest”. In the past Musk has often told Tesla’s workers to ignore the firm’s share price, and even said publicly that the company was overvalued. Now it seems he truly believes in the potential of the brand, and in its current and projected value.