Ark Investment Management (Ark Investment Management founder and CEO Catherine Wood (Catherine Wood) told reporters that Tesla’s share price rose on Thursday only At the beginning. The stock price is likely to rise to $4,000 per share in the future, or even higher.
Wood believes that with Tesla’s biggest gain in a single day in six years on Thursday, “increasingly, some shorts will be forced to cover”. Her company holds quite a few Tesla shares.
In fact, Tesla’s closing price on Thursday was $299.68, a one-day increase of 17.67%. According to S3 Analytics estimates, those who have shorted or bet on stock prices have lost nearly $1.4 billion.
After Tesla released a surprising third-quarter earnings on Wednesday, Wood saysTesla’s short-sellers were “successful”. She also said that “in the overall sluggish automotive industry”, Tesla achieved strong overall revenue and unit sales growth. “We think the overall car sales have peaked, but it’s really refreshing”.
Before the third-quarter earnings report was release on Wednesday. Ark Investment sold 150,000 shares of Tesla. But the investment company told reporters that their confidence in Tesla has not changed. Tesla is still an important shareholding in Ark’s investment.
Ark investment analyst Tasha Keeney said on Wednesday afternoon that the sale of Tesla shares “more is a portfolio management”. Some Ark funds stipulate that the proportion of a stock in a portfolio cannot exceed 10%. Gini explained that as Tesla has appreciated from other companies in the fund, the sell-off is a last resort.
In February 2018, Wood first predicted that Tesla’s share price could eventually reach $4,000 per share. Reiterated that she believes that Tesla’s leading position in the autonomous vehicle segment will drive the company’s share price to rise.
At present, Tesla has tradable shares of more than 179 million. According to Wood’s target price, Tesla’s market value will eventually exceed 700 billion US dollars. Close to the world’s most valuable technology giant. But considering that Tesla’s current market value has just exceeded $53 billion. The company’s stock price fluctuates significantly, the market value of $700 billion is still far away.
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