Whitney Tilson once bet Tesla wouldnt post a profitable quarter in 2019. He lost. The former hedge-fund manager early last year also predicted the beginning of the end for the stock, with a $100 target by 2020. Also, a misfire.<\/p>\n
Indeed, many a Tesla TSLA, +10.30% bear has been crushed lately as shares keep cranking out record highs and wildly rosy predictions continue to pile up. Ark Investments Catherine Wood, for instance, sees a $6,000 a share, and New Street just came out with an $800 target, to name a few.<\/p>\n
Love is definitely in the air.<\/p>\n
But of all the bullish cases that hes come across lately, Tilson, in a post highlighted this week on ValueWalk, credits Arne Alsin of Worm Capital for perhaps the best Tesla take hes ever read.<\/p>\n
Alsin describes Tesla as the best investment opportunity in the market today, and has bought enough to make it his biggest holding, followed by Amazon AMZN, +0.68% and Netflix NFLX, +1.33% . He says, by 2030, Tesla, which is only in the second or third inning of its growth story, could emerge as one of the top five most valuable companies in the country. <\/p>\n
There is an immense level of demand around the world for Tesla, especially in Asia, and a high level of consumer fidelity to the brandsimilar to Apple AAPL, -0.14% , Alson wrote. Meanwhile, the firm is just beginning its industrial expansion into additional industries (energy and autonomous rideshare among them) and multiple geographies (Europe, Asia) each worth several trillion dollars.<\/p>\n
He said that the catalysts that will propel the stocks growth in 2020 include S&P 500 inclusion, bubbling demand in China, and the introduction of the Model Y crossover into several markets. Beyond that, Teslas considerable lead in autonomy and the viability of its self-driving robotaxi network, he wrote, will be the drivers once the broader market realizes the potential of both. <\/p>\n
I view the company as an undervalued growth firm with considerable room for upside in the near-term and incredible prospects for the long-term, Alsin said. <\/p>\n
He didnt offer exact price targets but he said his outlook is in line with those calling for Tesla to reach $4,000 a share and to be worth $1 trillion by 2030. The stock is currently trading at $542 with a market cap approaching $100 billion. <\/p>\n
Depending on certain factors that can play out in the next couple of years from battery Improvements to full-self-driving capabilities its my view that its just a question of when, not if, Tesla achieves these valuations, he wrote.<\/p>\n
As for Tilson, well, hes not pounding the table as a Tesla short anymore, but hes still far from accepting the future as viewed through such bullish lenses. <\/p>\n
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The best bullish case ever made for Tesla, according to prominent Tesla bear - MarketWatch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Whitney Tilson once bet Tesla wouldnt post a profitable quarter in 2019. Continue reading