Tesla (NASDAQ:TSLA) – If You Invested $1,000 In Tesla Stock When Cathie Wood Made Her $4,000 Prediction, Here's How Much You'd Have Now

In 2018, a fund manager made a bullish call on Tesla Inc TSLA that placed a price target far ahead of analysts and at the time seemed pretty out there.

Less than three years later, that bullish price target came true and helped cement Cathie Wood’s place in investing history. Here’s how investors did that tailed her trade.

What Happened: On Feb. 7, 2018, Ark Invest CEO Cathie Wood called for shares of Tesla to hit $4,000.

“If we’re right, this stock in our models is going to $4,000,” Wood said on CNBC. “If we’re wrong, and all they do is electric, our bear case is $600.”

The call from Wood seemed out there at the time, with the highest price target from analysts sitting at $500 and shares of the electric vehicle company trading at $346.

“The future is electric. The future is transportation-as-a-service, software-as-a-service. This is where Tesla is going.”

Tesla shares underwent a five-for-one share split in August 2020, making the price target from Wood a split-adjusted $800 per share for Tesla.

In January 2021, Wood’s prediction came true, with Tesla passing the $800 level.

Wood has doubled down since then, laying out a call for shares of Tesla to hit a split-adjusted price of $1,400 in 2024 and another call for Tesla shares to hit $3,000 by 2025.

Tesla shares hit an all-time high of $1,243.39 in November 2021.

The electric vehicle stock remains one of the largest positions from Ark Funds, maintaining the top position in Ark Innovation ETF ARKK, Ark Next-Generation Internet ETF ARKW and Ark Autonomous Technologies & Robotics ETF ARKQ representing sizes of 9.8%, 9.2% and 11.6% respectively.

Related Link: Here’s How Much $100 In Bitcoin Could Be Worth In 2030 If Cathie Wood’s Price Prediction Comes True

Investing $1,000 In Tesla: Wood’s call for Tesla to hit $4,000 per share was out there and ahead of analysts at the time. Those investors who saw her bullish call and conviction as reasons to invest have been rewarded with the milestone achieved.

A $1,000 investment in Tesla on Feb. 7, 2018 could have purchased 2.89 shares of Tesla based on a high price of $346 that day.

The 2.89 shares would turn into 14.45 shares after the five-for-one stock split in 2020. A recent three-for-one stock split in August 2022 turns the 14.45 shares into 43.35 shares. The 43.35 shares would be worth $12,991.13 today, based on a price of $299.68 for Tesla at the time of writing.

The investment would be up 1,199%, representing an average annual gain of 299.8% over the four years since Wood’s price target was announced.

Those lucky enough to buy Tesla shares, based on Wood’s price target announcement, and were then able to time an exit near all-time highs in November would have fared even better. A $1,000 investment bought on Wood’s price target prediction and sold at all-time highs would have turned into $17,968.43, a gain of 1,697%.



Image and article originally from www.benzinga.com. Read the original article here.