- Investment firm with a share of $ 164 million. USA tesla convinces Elona Mask not to take the company into private life.
- ARK Investment Management says that the price of Tesla shares may be worth $ 4,000, but it will never be available in private markets.
- See Tesla in real time here.
ARK Investment Management, which owns 580,000 shares of Tesla, worth about $ 163.84 million, published an open letter to CEO Elon Musk, in which he urged not to involve a separate manufacturer of electric vehicles, arguing that the shares could cost almost ten times the billion-dollar goal of the billionaire ,
"Tesla should be estimated somewhere between $ 700 and $ 4,000 per share in five years," said founder and CEO Kathy Wood.
"Taking Tesla private today at a price of $ 420 per share will greatly exacerbate it, depriving many investors of the opportunity to participate in its success. In our view, given the right investment time horizon, TSLA is now a valuable asset. "
Of course, between Tesla and its shares a lot is worth $ 4000 per piece.
The investment thesis of ARK is based on the fact that the company completely passes from the manufacturer to the full company "mobility as a service". When it reaches this point, ARK estimates, its profit can be up to 80%. In the last quarterly report this month, Tesla reported that the total gross margin is 15%.
"In the $ 4,000 scenario, our assumptions are conservative: we include profits only from cars and some autonomous taxi networks, rather than from trucks, drones, energy sales, or MaaS capabilities in China," writes ARK, which manages 5.9 billion dollars, writes,
"In addition, we include about $ 20 billion in breeding that may be required to penetrate and expand the last four markets."
According to Bloomberg, for the context, Tesla's average target price among analysts on the sales side is $ 333. Even The most optimistic analyst on Wall Street, Pierre Ferraga of New Street Research, has a target of 533 dollars – slightly more than one eighth goal of ARK.
Musk argued that the transition of a private person would ease the burden and short-sightedness that comes from analysts and investors, a quarterly income report, but ARK argues that the reverse will be true.
"I understand why you might want to take Tesla privately, but I must try to dissuade you," the letter said.
"Firstly, as a private company, Tesla will not be able to benefit from its competitive advantages as quickly and dramatically as it does as a public company, given the network effects and natural geographical monopolies that autonomous taxi and truck networks will provide ,
"Secondly, in the private market, Tesla will lose free advertising related to your role as CEO of a public company, not only with best-seller of middle-class premium in the USA, but also, perhaps, in a better position to run a fully autonomous taxi network across the country in the next few years. "
Tesla's shares since the August 7 announcement of the date of Musk's announcement that he will try to take Tesla privately. After falling to record highs of $ 389, the stock fell below $ 300 on the back of reports of agenda for the Securities and Exchange Commission and set of lawsuits, Currently it trades around $ 321.
Bloomberg reported on Thursday that Musk hired Morgan Stanley in his attempt to take Tesla privatelyThis follows the analyst of the bank Adamu Jonas, who suspends the coverage of the shares on Tuesday, which is typical when the bank's investment bank unit participates in a deal with a company covered by its research department. Goldman Sachs has suspended coverage August 15, recognizing that he is involved in the transaction in some capacity.
"As public equity markets continue to passively, I believe that we are witnessing a massive irrational use of capital, and innovation is the most ineffectively priced part of the market," ARK said.
"Tesla personifies this problem of capital allocation, and when the market understands it, your shares should have a significant growth potential, which is a valuable lesson for open market investors to reconsider their short-sighted ways."