Thursday, August 9, 2018

CNBC: "Tesla stock going to $4,000" (TSLA)

Aristophanes first used the phrase "cloud cuckoo land" in his play The Birds 2500 or so years ago.
It is so over-the-top optimistic a place that it moves Pollyanna and Doctor Pangloss toward the morose-despondent-suicidal end of the spectrum. And it was the first thing I thought of on seeing this headline.

From CNBC:

Tesla stock going to $4,000 — that would be an increase of 1,100%: Money manager Catherine Wood
  • Tesla at $4,000 would put it in the same market value league as the world's biggest tech giants.
  • "If we're wrong," Wood says, "our bear case is $600" on Tesla, which would still be nearly a double.
  • Tesla is one her overall fund's largest holdings.
Ark Investment Management CEO Catherine Wood, a money manager known for making bold calls, told CNBC on Wednesday she believes Tesla stock will one day trade at $4,000 per share.

"If we're right, this stock in our models is going to $4,000," Wood said on "Squawk Box." "If we're wrong, and all they do is electric, our bear case is $600."

Even at Wood's "bear case," $600 per share would be nearly a double from current levels. Tesla is one her overall fund's largest holdings.

"The future is electric," Wood said. "The future is [also] transportation as a service, software as a service." She added, "This is where Tesla is going."

The highest price target among the Wall Street analysts who cover Tesla is $500 per share.
In December, talking up her belief in bitcoin, Wood floated another provocative idea, saying the world's biggest cryptocurrency is "so much bigger an idea than even Apple, which is a pretty big idea."

Tesla stock at $4,000 would also certainly qualify as big idea, and would translate to a market value about $672 billion.
By comparison, Apple already has a market value of about $837 billion, and it's leading the race among Google-parent Alphabet, Microsoft and Amazon to become the first $1 trillion company.

Wood believes Tesla, with a current market value of around $56 billion, should be in the same league as the big four tech stocks due to Elon Musk, the billionaire founder of Tesla and SpaceX....MORE
In pre-market trade the stock is changing hands at $366, down $4.40, leaving plenty of upside should the analyst prove correct.
As a side note back in June 2010 we were posting:
"Tesla CEO to investors: We're like Google or Apple" (TSLA; AAPL; GOOG)
Oh really?
The IPO is scheduled for June 29....
The stock traded down and was below the IPO price by day four of its public life and Elon stopped with the Google/Apple comparisons

As another aside, it took until February 2014 for "Uh Oh: The First 'Tesla To $1000' Call (TSLA)"
I was dreamin' when I wrote this / Forgive me if it goes astray....

That was at $250.81