Tesla rallies after Ark Invest predicts US$3,000 stock price

REUTERS: Shares of Tesla jumped over 6 per cent on Monday (Mar 22), getting a lift from a bullish report from Ark Invest, an influential shareholder in the electric car maker.

Ark Invest said in a report on Friday it expects Tesla's stock price to more than quadruple to US$3,000 by 2025. Tesla was last trading at US$698 a share.

The asset management company run by Cathie Wood also predicted Tesla's electric vehicle revenue would reach between US$234 billion and US$367 billion by 2025.

Tesla's total revenue in 2020 grew 28per cent to US$31.5 billion.

Popular with retail investors, the Ark Innovation exchange traded fund owns Tesla shares worth close to US$2.5 billion. Tesla accounts for about 10per cent of the US$24 billion Ark Innovation fund, making it the fund's largest investment.

Ark Innovation rose 2.5 per cent on Monday and is up over 200 per cent in the past 12 months.

Tesla is down over 20 per cent from its January record high and is up around 700p er cent over the past 12 months.