“Dear Elon and Tesla Board of Directors,”
This small informative post is about a letter written to Elon Musk that I believe is the most important letter that has ever, or will ever, be written to the CEO of the most valuable electric car maker in the world, Elon Reeve Musk, an engineer and technology entrepreneur.
For those that still have no idea who Elon Musk is, according to the amazing free online Wikipedia, Elon is a citizen of South Africa, Canada, and the United States (where he resides permanently) and is the founder, CEO, and chief engineer/designer of SpaceX; CEO and product architect of Tesla, Inc.; founder of The Boring Company; co-founder of Neuralink; and co-founder and initial co-chairman of OpenAI.
This letter was written in August 22, 2018 by Catherine Wood, ARK Invest CEO. ARK Invest focuses solely on disruptive innovation and offers strategies to investors who seek to capture long-term capital appreciation and alpha.
Investing in the future, today. ARK defines disruptive innovation as the introduction of a technologically enabled new product or service that has the potential to change an industry landscape by creating simplicity and accessibility while driving down costs. ARK ETFs aim to provide access to companies benefiting from disruptive innovation.Ark Investment About
In August 7th 2018, Tesla CEO Elon Musk posted a controversial historical opinion about taking his beloved Electric cars manufacturing company, Tesla, private.
That historical tweet must have left Ark Invest CEO Cathie Wood sleepless for days. In 23rd of August 2018, Cathie responded to Elon’s tweet this an amazingly, well written, well timed but completely UNDERRATED letter that I believe history will soon start to remember as the Most Important Letter to Tesla CEO Elon Musk.
After the letter was well posted on Ark Invest’ website and shared with the people of the world, Ark Invest CEO Cathie posted a tweet about it, notifying Tesla CEO Elon Musk about the letter, in the hope that Elon would read and consider her suggestions, not to take Tesla Private at the price of $420.
That tweet is liked 1,500 times and retweeted 248 times at the moment.
Fast forward to February 2020, The price of Tesla Share is $650.57 at the moment, Market Cap is $117.262B, Tesla is second most valuable car manufacturer in the world after Toyota with a Market Cap of $195.058B.
Below is the historical moment in the Tesla price action chart!.:
The Most Underrated Part Of The Letter.
According to analysis by ARK Invest in 2018, Tesla should be worth between $700 and $4,000 a share in five years (2023). Taking Tesla private then at $420 per share would greatly undervalue it, depriving many investors of the opportunity to take part in its success. In ARK’s opinion, given the right investment time horizon, TSLA is a great deep stock of great interest.
Our $4,000 price target assumes that Tesla evolves from a hardware manufacturer with 19% gross margins to a company generating most of its profits from Mobility-as-a-Service (MaaS), a business that we believe will enjoy 80% gross margins. In the $4,000 scenario, our assumptions are conservative: we incorporate profits only from cars and certain autonomous taxi networks, not from trucks, drones, utility scale energy storage, or the MaaS opportunity in China. Further, we incorporate the roughly $20 billion in dilution that might be necessary to penetrate and scale the latter four markets. Clearly, most asset managers in the public markets do not agree with us, which is why I’m writing to you now.more
Dear readers, do you agree with me that this letter written by Cathie is the most important letter ever written to Tesla CEO Elon Musk?.
Please feel free to share your opinion in the comment section. Thank You and God bless.
Tesla Master Secret Master Plan Video