TSLA’s (NASDAQ: TSLA) chart below is now the stuff of Tesla and Musk folklore.

Stock market aficionados describe the Tesla chart in various degrees of hyperbole:

“Insane. Parabolic. Bubble-Bubble. It’s freaking off-the-charts.

Shades of BTC in 2017.”

Whatever the description for the chart and TSLA’s price action, it’s worthwhile to look at the catalyst that sent the stock soaring over 40% higher in the last two trading sessions.

The $7,000 price target on Tesla (NASDAQ: TSLA) by ARK Invest

Over its 40 years of experience investment manager ARK Invest has focused on “disruptive innovation.”

“We aim to identify large-scale investment opportunities in the public markets resulting from technological innovations centered around genome sequencing, robotics, artificial intelligence, blockchain technology, and energy storage,” ARK says on its website.

ARK’s “disruptive innovation” is the introduction of a technologically enabled product or service that transforms economic activity by creating simplicity and accessibility while driving down costs.

ARK weighed in with a call on Tesla earlier this week. It said the EV maker would disrupt and transform global transport and that its shares would skyrocket to a “base case” scenario of $7,000 by 2024. That translates to a market value of $1.3 trillion.

However, at either end of the base case is a “best case” target of $15,000 and a “worst-case” of $1,500.

ARK Invest says TSLA is a no-brainer

Catherine Wood, the chief investment officer of ARK Invest, says buying Tesla shares is a “no-brainer,” as she expects the price of an electric vehicle will fall below that of like-for-like gas-powered vehicles within two years and continue to decline after that.

Therefore, EVs would end up commanding a third of total car sales within the next five years with Tesla dominating the market.

Market reaction

The extraordinarily bullish call from ARK ignited the stock price. It pushed short sellers to cover at higher and higher levels. Therefore, there was likely capitulation when it went north of $900.

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