Elon MuskThe electric vehicle company has been making waves in the world of wealth in recent years. The automaker’s market capitalization is approaching the trillion-dollar mark, and some analysts believe it could one day quadruple its current levels.
Above: Tesla’s Model 3 (Source: EVANNEX; Photo by Casey Murphy)
Tesla’s market capitalization could hit $4 trillion by 2030, says Gary Black of investment firm The Future Fund, according to the Miami Herald. Black says the electric vehicle industry will reach 60% market penetration by 2030, and he predicts You’re here will achieve a whopping 21 percent of the automotive market share.
On Twitter, Black wrote, “When EV adoption reaches 60%, $TSLA with 20% EV share will be considered a safe haven like $AAPL.”
But Black isn’t the only talking head on Wall Street predicting a $4 trillion market capitalization for Tesla.
Tesla bull Cathie Wood and her company Ark Invest also released an optimal scenario to target the company’s $4 trillion market capitalization, along with expectations that the stock will hit $3,000 by 2025, according to Reuters.
Wood currently holds a downside price target of $1,500 by 2025 and an upside price target of $4,000 per share.
Tesla is Ark Invest’s largest holding, and Wood has led the company through a series of impressive predictions ahead of 2020 – Tesla being the champion win expanding Wood’s reach over the past few years.
In a recent research note, Wedbush analyst Daniel Ives noted Tesla’s new approval Gigafactory in Germany as a milestone for the automaker which is expected to drive another half million vehicles a year.
“The Berlin plant establishes a major beachhead for Tesla in Europe with the potential to expand this plant to produce approximately 500,000 vehicles per year with the Model Y at the forefront over the next 12 to next 18 months.”
With the opening of Gigafactory Berlin-BrandenburgTesla can significantly increase production for Europe while reducing previous costs of importing vehicles to the continent from its Gigafactory Shanghai.
Tesla is also expected to begin delivering vehicles from Gigafactory Texas this month, with plans for a Tesla Con Texas opening event from April 5-9.
Additionally, the Austin-based automaker recently announced plans to vote on a stock splitwhich could provide fodder (and incentives) for opportunistic investors.
Still, Tesla is set to continue to face problems with semiconductors chip 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 suggest that Tesla manages to grow regardless.