TSLA Could Hit $4 Trillion Market Cap by 2025

TSLA Could Hit $4 Trillion Market Cap by 2025

Tesla family, courtesy Tesla Motors

Could Tesla Motors (TSLA) really hit an unprecedented $4 trillion market cap by 2030? A few bullish analysts are saying it could – and you might just want to listen.

Elon Musk’s electric vehicle company sent shockwaves through the auto industry when TSLA reached a trillion dollar valuation last fall. It has fallen off quite a bit since (hasn’t everything?), but the automaker’s market cap is steadily creeping its way back up to that lofty mark, and some analysts are saying it won’t stop there.

According to Cathie Wood’s ARK Invest, Tesla Inc.’s share price will reach the $3,000 mark by 2025, putting the company’s total market cap as high as $4 trillion in the best-case scenario, according to a research note published here last Friday.

To arrive at this forecast, ARK used a Monte Carlo model with 34 inputs, the high and low forecasts incorporating 40,000 possible simulations. Our bull and bear price targets are the top and bottom quartile outcomes from the simulations, as shown (below).

ARK’s Predicted Scenarios2025 Price TargetSignificance
Expected Value$3,000This projection is our base case for TSLA’s stock price in 2025 based on our Monte Carlo analysis.
Bear Case$1,500We believe that there is a 25% probability that Tesla could be worth $1,500 per share or less in 2025.
Bull Case$4,000We believe that there is a 25% probability that Tesla could be worth $4,000 per share or more in 2025.
Note: Numbers for ARK’s 2025 Price Target are rounded for simplicity and consistent with reasonable variance in the forecast.

ARK isn’t alone in predicting big things for Tesla. Gary Black of The Future Fund, told the Miami Herald that the EV industry will reach 60 percent market penetration by 2030, and he anticipates Tesla will own a massive 21 percent of the overall new car market share. On Twitter, Black wrote, “When EV adoption hits 60%, $TSLA with 20% EV share will be viewed a safe haven like $AAPL.”

In another recent research note, Wedbush analyst Daniel Ives noted Tesla’s newly-approved Gigafactory in Germany as an important milestone for the automaker. “The Berlin factory establishes a major beachhead for Tesla in Europe,” says Ives.

With the opening of its new factory in Berlin-Brandenburg, Tesla can significantly increase production for Europe while lowering previous costs of importing vehicles to the continent from China, as it has done in the past.

Interesting stuff, but is it convincing? You tell us — scroll on down to the comments section and let us know if any of these reports will convince you to go long TSLA.



FTC: We use income earning auto affiliate links. Learn more.



Leave a Reply

Your email address will not be published. Required fields are marked *




two fiat 600 parked in front of outdoor marble staircase somewhere in Italy

The New FIAT 600 Hybrid Focuses on European Conquest

Image showcasing David Perez’s 2021 Tesla Model 3 Performance at Electrify Expo Showoff in Washington, DC

Unleashing the Beast: David Perez’s 2021 Tesla Model 3 Performance

Image showcasing Matt Locke's first ride of the Volcon Brat electric motorcycle at Electrify Expo

Volcon Brat Electric Motorcycle: First Ride at Electrify Expo

Close up of an Ebikeling electric bike conversion kit being installed

5 Best Electric Bike Conversion Kits

Stylish and Lightweight Electric Bike, 30-Day At Home Trial, 2-Year Warranty.