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Tesla stock price analysis: TSLA can hit $3,000 by 2025, says a top hedge fund manager

By: Invezz

Shares of Tesla (NASDAQ: TSLA) have slipped over 4% this week as the market rotation to cyclical stocks out of large-cap tech stocks continues.

Fundamental analysis: Customers can now buy Tesla with Bitcoin in the U.S.; Can it help reach $3,000?

Ark Invest fund, run by the influential manager Cathie Wood, is being widely perceived as one of the biggest Tesla investors and supporters. In the latest set of comments on TSLA, Wood said she expects shares to hit at least $3,000 by 2025.

“It seems Ark believes Tesla will have $300 billion to $700 billion in 2025 revenues (vs. $31.5 billion in 2020), with no new debt and no equity issuance,” said Gordon Johnson of GLJ Research, and a frequent critic. 

“Given everyone is talking about Ark’s price target, the assumptions in Ark’s model should be heavily scrutinized. When we did a bit … a picture emerges of a potentially flawed/misinformed model, in our opinion.”

Cryptocurrency investors are arguing that Bitcoin can help Tesla stock to grow further. Businessman and Tesla CEO Elon Musk said Tuesday that consumers can now purchase Tesla cars in the United States with Bitcoin. Last month, the carmaker announced it had purchased $1.5 billion worth of Bitcoin and that consumers would soon be able to pay for Tesla products in Bitcoin.

There is a support page on Tesla’s official website where it is explained how buyers can pay for a Tesla car using Bitcoin. The carmaker’s popular electric vehicles are usually priced between $37,990 and $124,000 before tax.

Musk also said that non-U.S. residents will be able to purchase Tesla with BTC later this year, without mentioning specific countries. Tesla uses “internal” and “open-source software” to accept Bitcoin payments, Musk added. The company “operates bitcoin nodes directly,” he said. 

Musk has been one of the loudest Bitcoin supporters among tech CEOs. He has tweeted about Bitcoin several times over the past few months, but also about other cryptocurrencies including Ether and Dogecoin. 

Wedbush analyst Daniel Ives said last month that Tesla’s stock is now directly linked with Bitcoin’s value. 

“Musk is now tied to the bitcoin story in the eyes of the Street and although Tesla made a billion paper profit in its first month owning the digital gold, it comes with added risk,” Ives said.

Technical analysis: Approaching support

High bull-case targets for Tesla are great but the current reality for the stock is completely different. It trades about 30% of the record highs as sellers seek to push the stock below the $600 mark again with major support for investors looking to buy Tesla stock located around the $500 handle.

Tesla weekly chart (TradingView)

On the upside, Tesla bulls will, most certainly, look for a print of the fresh record highs above $900. In particular, the 127.2% extension line comes exactly at $1,000, which makes it an attractive target for the buyers. 

Summary

Elon Musk tweeted today that Tesla customers can now buy a Tesla car using Bitcoin in the United States. 

The post Tesla stock price analysis: TSLA can hit $3,000 by 2025, says a top hedge fund manager appeared first on Invezz.

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