Tesla (TSLA) is valued at $3,000 a share, according to Elon Musk, who told workers that he believes with Ark Invest that the company is worth $3,000 per share “if they execute really well.”

The Chief exec has often spoken on Tesla’s share price, but it’s amazing how often he’s said it’s too high.

Musk told his millions of Twitter followers in 2020 that as Tesla’s stock was hitting new highs, the price was “too high.”

Tesla’s stock fell as a result, but it is currently much higher than when Musk made the statement.

Tesla's stock is now selling at $733 a share, making it the world's richest automaker with a market capitalization of over 730 billion dollars.

Whether Tesla is overpriced or not is a point of contention among Wall Street companies, but others think it might be worth a lot more.

One of them is Ark Invest.

To be honest, via its investment vehicles, the firm is also a major Tesla stakeholder.

They issued a fresh letter this week stating a $3,000 base stock price forecast for Tesla by 2025.

During a discussion with Yahoo Finance, Cathie Wood stated regarding the price target:

“Our estimate for Tesla’s success has gone up. The main reason for that is their market share. Instead of going down from year-end 2017 to today, it has actually gone up fairly dramatically,” 

According to Ark Invest's value estimates, Tesla will produce between 5 and 10 million cars by 2025.

Given that Tesla is expected to produce less than 1 million cars this year, this is a dramatic increase.

The company is also relying on Tesla providing a fully autonomous ride-hailing network, called Tesla Network, that would generate a lot of revenue with a high-profit margin.

Elon Musk discussed Ark's revised $3,000 pricing goal with Tesla workers in an email acquired by Electrek and said he agreed with Ark:

“If we execute really well, I agree with Ark Invest.”

Tesla's market capitalization would be $3 trillion at a $3,000 stock price, making it the most valuable business in the world.

What we think:

Musk’s email is effectively a direct remark on Tesla’s stock price because Ark’s recent letter upgraded their valuation model and price objective.

Tesla, he thinks, could be worth $3 trillion in the next four years if it is “executed really well.”

To be honest, it is a longer price objective timeframe than usual, but Musk rarely speaks favorably about the stock price.

I remember Musk urging workers a few years back to “ignore the stock price.”

He’s now literally emailing them about the stock price. What went wrong?