Tesla could soar another 300% as the company expands its tech outside of the auto industry, says a prominent VC investor

FILE PHOTO: Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai, China January 7, 2020. REUTERS/Aly Song/File Photo
Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai

  • Tesla could soar over 300% to reach $2,500 in the next three years, says venture capitalist and veteran tech analyst Gene Munster.
  • The Loup Ventures co-founder told CNBC Tesla will use its current technology to expand beyond the auto industry and into areas like insurance, autonomy, and HVAC.
  • “They’re going to evolve outside of cars longer term,” Munster added.
  • Shares of Tesla reached an all-time high of $615 shortly after the opening bell on Monday. 
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Tesla could soar over 300% to $2,500 within the next three years, according to venture capitalist and veteran tech analyst Gene Munster. A move like that would push Tesla’s current $567 billion market capitalization to over $2 trillion. Only one other company in the world-Apple-has passed that number to date.

The Loup Ventures co-founder told CNBC on Monday that Tesla will evolve over the next few years to become more than just a car company.

“They’re really going to take their tech that they’re defining and pioneering with auto and apply it to new markets,” he said.

Munster discussed how Tesla CEO Elon Musk recently said that the company may enter into the insurance business, HVAC space, and autonomous vehicle industry. 

“Elon has recently said that 30 to 40 percent of the value the car could be in insurance,” said Munster. “What that means is that they can start offering their own insurance and improve margins. That’s high margin revenue, not to mention everything they’re doing around over-the-air updates with autonomy and what they can even do around HVAC.”

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Munster also pointed to flying taxis as another frontier Tesla may expand to that could propel it’s stock price, though he added: “I would not invest in Tesla based on that, but the concept that this company is going to continue to evolve and be a tech leader in the next decade, I’m on board with that.”

Munster added that the “ship has sailed” for traditional auto companies to compete with Tesla, though Volkswagen followed by GM are in the best positions to “remotely compete” with the electric vehicle maker.

“There’s no substance competition, they’re going to evolve outside of cars longer term,” he said of Tesla.

The venture capitalist, who spent over 20 years as a tech analyst on Wall Street, said that Apple could be the biggest company to compete with Tesla over the longer term. 

“Whatever [Apple’s] ambitions are in vehicles, I mean it’s been really quiet there, I’m not expecting anything in the near term, but that as a Tesla investor would be the one announcement that would cause me to step back and rethink things,” said Munster.

Shares of Tesla reached an all-time high of $615 shortly after the opening bell on Monday. 

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