Tesla (NASDAQ:TSLA) – If you had invested $1,000 in Tesla stock when Cathie Wood made her $4,000 prediction, here’s how much you would have now

In 2018, a fund manager made a bullish call on Tesla Inc. TSLA this put a price target far ahead of analysts and, at the time, looked pretty good.

Less than three years later, that bullish price target has come true and helped cement At Cathie Wood’s place in the history of investing. Here’s how investors followed his transaction.

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

“If we’re right, that stock in our models goes to $4,000,” Wood told CNBC. “If we get it wrong and all they do is electric, our bear case is $600.”

Wood’s call seemed there at the time, with analysts’ highest price target 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. That’s where Tesla is going.

Tesla shares underwent a five-for-one stock split in August 2020, making Wood’s price target a split adjustment of $800 per share for Tesla.

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

Wood has doubled since then, issuing a call for Tesla shares to reach an adjusted price of $1,400 in 2024 and another call for Tesla shares to reach $3,000 by 2025.

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

Electric vehicle stock remains one of Ark Funds largest positions, maintaining the first position in Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW and Ark Technologies Autonomous and Robotics ETFs 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

Invest $1,000 in Tesla: Wood’s call for Tesla to hit $4,000 per share was there and ahead of analysts at the time. Investors who saw his bullish appeal and conviction as reasons to invest were rewarded with the milestone.

A $1,000 investment in Tesla on February 7, 2018 could have bought 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 $299.68 price for Tesla at time of writing.

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

Those lucky enough to buy Tesla stock, based on Wood’s price target announcement, and 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 forecast and sold at all-time highs would have turned into $17,968.43, a gain of 1,697%.

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