Elon MuskThe electric vehicle company has been making waves in the world of the rich in recent years. The automaker’s market cap is approaching the trillion-dollar mark, and some analysts believe it could one day quadruple from current levels.
Above: Tesla’s Model 3 (Source: EVANNEX; Photo by Casey Murphy)
Tesla’s market cap could reach as much as $4 trillion by 2030, according to Gary Black of investment firm The Future Fund Miami Herald. Black says the EV industry will reach 60 percent market penetration by 2030, and he expects that Tesla will reach a whopping 21 percent of the car market share.
On Twitter, Black wrote, “When EV adoption reaches 60%, $TSLA with 20% EV will be considered a safe haven like $AAPL.”
But Black isn’t the only Wall Street speaker forecasting a $4 trillion market cap for Tesla.
Tesla bull Cathie Wood and her firm Ark Invest have also aired a best-case scenario for a $4 trillion market cap, along with expectations for the stock to hit $3,000 by 2025 Reuters.
Wood currently has a bear case price target of $1,500 per share through 2025 and a bull case price target of $4,000 per share.
Tesla is Ark Invest’s largest holding, and Wood has guided the company through a series of impressive forecasts ahead of 2020 — with Tesla being the championed win that has expanded Wood’s reach in recent years.
In a recent research note, Wedbush analyst Daniel Ives noted that Tesla was re-registered gigafactory in germany as an important milestone for the automaker, which should lead to another half a million vehicles per year.
“The Berlin facility represents an important bridgehead for Tesla in Europe with the potential to expand this facility to annual production of ~500,000 vehicles with the Model Y front and center over the next 12 to 18 months.”
Tesla will also begin delivering vehicles from Gigafactory Texas this month, with an inaugural Tesla Con Texas event scheduled for April 5-9.
Additionally, the Austin-based automaker recently announced its intention to vote on a stock splitwhich could provide fodder (and incentive) for opportunistic investors.
Nevertheless, Tesla should continue to have problems with semiconductors chip supply and other supply chain issues for the remainder of this year, according to a statement from Musk last year. That said Q1 deliveries seem to indicate that Tesla still manages to grow.