Money Manager is Confident Tesla Could Reach $7,000 in Next 5 Years

Tesla shares have been soaring since the year started and even hit over $700 a share.

A money manager believes that the stock could even hit $7,000 in the next five years.

Money manager Catherine Wood told CNBC that she has “very high” confidence in her latest five-year price target of $7,000 per share for the electric vehicle maker.

“We’ve arrived at that price by weighting the probabilities of 10 different scenarios, including bankruptcy, to be honest,” Wood said on “Fast Money.”

She added, “So we’ve tried to be as fair and balanced as we could possibly be.” Wood’s firm has about $11 billion in assets under management.

Wood’s previous five-year price target on Tesla was $6,000.

“Their battery cost is three to four years ahead of any other auto manufacturer in terms of cost declines,” Wood said.
If rivals such as BMW want to compete with Tesla, “they will have to sell their cars at a loss at the same time they’re losing their internal combustion engine business,” Wood argued.

Shares of Tesla are up 75% year to date.

Disclaimer: We have no position in Tesla Inc. (NASDAQ: TSLA) mentioned and have not been compensated for this article.