Elon Musk’s electric vehicle large-cap Tesla Inc (NASDAQ:TSLA) was in Cathie Wood’s outtray this week, with the famed tech investor disposing of around $25 million from her Ark Invest investment company.
Tesla shares have been on a rip this year, soaring around 140% to $260 at the time of writing.
Regardless of short-term profit taking, Tesla is still the largest holding in Cathie Wood’s cornerstone ARK Innovation ETF (ARKK), comprising 10.87% of total holdings.
Roku Inc (NASDAQ:ROKU), Coinbase Global Inc (NASDAQ:COIN), Zoom and UiPath Inc (NYSE:PATH) round out the top-five holdings by weight.
Tesla stock is also a primary constituent of the ARK Next Generation Internet ETF (ARKW) and the ARK Autonomous Tech and Robotics ETF (ARKQ).
In April, Ark financial analysts predicted a $2,000 per-share value on Tesla stock in 2027, with a bull case of $2,500.
Achieving the top end of Ark’s thesis would suggest an 860% upside on current spot prices, making for a fanciful market capitalisation of in the seven-trillion-dollar range.
ARK Invest believes that Tesla could generate revenues of around $200 billion from robotaxis by 2027.
Ark’s bullish Tesla thesis is far from universal. This January, valuation guru Aswatch Damodoran called Tesla overvalued, warning of the “dangers of tying companies to personalities”.