Tesla Gets $2,500 3-Year Target From Munster, But Analyst Sees Apple As A Roadblock In EV Maker's Path

Tesla Inc’s TSLA story is evolving and the company’s stock could shoot up to $2,500 in three years, according to Loup Ventures co-founder Gene Munster.

What Happened: Munster talking to CNBC’s “Squawk Box” program on Monday said that the Elon Musk-led company was on an evolutionary course.

“Elon has recently said that 30% to 40% of the value of the car could be in insurance,” Munster explained. “What that means is that they can start offering their own insurance and improve margins. That’s high-margin revenue.”

In terms of potential challengers, Munster sees only Apple Inc AAPL potentially matching Tesla if the iPhone maker were to get into the same segment.

Related Link: Apple Seeks Patent For Windshield Crack Detection Tech

“As a Tesla investor, that would be the one announcement that would cause me to step back and rethink things,” Munster said on a possible foray by Apple into autos.

Why It Matters: Should Tesla stock touch $2,500 in the coming three years, it would value the company over $2 trillion, taking into account 931.8 million shares outstanding. 

The Palo Alto-based automaker’s existing market cap is worth $598 billion. Apple’s market capitalization is over $2.1 trillion, as of Monday’s closing.

Munster does not think legacy automakers such as Volkswagen AG VWAGY or General Motors Company GM pose a formidable challenge to Tesla as “really there’s no substance competition.”

Musk has suggested that Tesla is open to buying a traditional automaker but Munster thinks that is unlikely to happen, partly because of vertical integration.

In terms of where Tesla is headed, Munster gave an example, which he said could make him lose his credibility — “I believe this is actually on Tesla’s roadmap — a flying taxi.”

“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,” said the analyst.

Price Action: Tesla shares closed nearly 7.1% higher at $641.76 on Monday and gained 1.17% in the after-hours session

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