The stock price of Tesla (NASDAQ: TSLA) has had a strong performance in the last few days, going from $ 480 on the 8th of January to almost $ 500 at this time. However, the director-general of ARK Invest, Cathie Wood, believes this is just the beginning for Tesla, and that its stock price will rise in the coming years. Value of the Shares of Tesla at this time, Wood stated that one of the predictions most ancient on the future of the stock price of this company was $ 4,000 in a term of 5 years. However, some of the most recent calculations have even surpassed that, putting the future price of the stock up at $ 6,000. If these predictions prove to be correct, and the shares of Tesla reached the price of $ 6,000, that would mean that the market capitalization of the company is set to rise to $ 1 trillion in the course of the next 5 years. At this moment, there are only two other companies with a market capitalization of that size: Apple and Microsoft. With predictions like that, many are already comparing the increase of the shares of Tesla with the price of Bitcoin (BTC). While this occurs, the CEO of Tesla, Elon Musk has never insinuated that you were a investor of Bitcoin. What if it was is that dropped recently a reference to Bitcoin, causing a bit of confusion and excitement in the community of cryptocurrencies. Tesla is growing in their actions which makes some analysts to compare future performance, as possible to that of Bitcoin. However, Elon Musk has not hinted at anything that relates to both companies. Here, however, another article about a possible inverse correlation between Tesla and Bitcoin.
What is this prediction about Tesla possible?
Many have felt that this is a prediction quite bold for a company that only had a few quarters of profitable up to now. However, when asked where they came from these predictions, Wood stated that: We focus on the market of electric vehicles, in the first place, and in the rapidity with which it will grow. We believe that, of the 2 million units last year, we will reach 37 million units – that is to say, approximately one-third of the total car market in 5 years – to the year 2024, said Cathie Wood. Wood also revealed that the original expectations were that Tesla could lose a third of its market share. He noted that Tesla was in the 17% in the past year, and it was expected that he would come down to 11%. This did not happen, and in its place, Tesla took the lead and soared above other car companies, which led to the new prediction that Tesla could not lose any market share at all. He has also noted that all of these new predictions don’t even include the autonomous vehicles, and focus strictly on the market of electric vehicles.
What happens with the regulators and legislators who are against the idea of the cars autonomous Tesla?
The accidents occur mainly due to human errors, which are removed to a large extent with the autonomous vehicles. These are the data that will allow Tesla to get regulators on board. In fact, Wood predicts that it is likely that the autonomous networks of Tesla arise in the U.S. and China by the end of 2021. Finally, the director-general pointed out that Tesla, unlike Uber, or even Google made a big effort to collect the most amount of data of high quality roads that exists, which makes it the leader in the development of autonomous vehicles. From now on, the company’s closest behind Tesla seems to be Volkswagen. The following two tabs change content below. A degree in Liberal Studies from the Metropolitan University. Lover of innovation and a believer of the technology for the future.