Cathie Wood, CEO of Ark Investment Management, is doubling down on her optimistic outlook for Tesla, predicting that the electric vehicle (EV) maker’s stock could skyrocket nearly tenfold to $2,600 within the next five years. Wood shared her bullish forecast at the HSBC Global Investment Summit in Hong Kong, emphasizing that Tesla’s future value will be predominantly driven by its upcoming robotaxi business, which she believes could make up 90% of the company’s overall worth by 2029. Additionally, Wood highlighted Tesla’s recent foray into humanoid robots, a venture that Ark Investment has yet to factor into its valuation model.
While Tesla faced stiff competition from China’s BYD in the global EV sales race last year, Wood remains confident in the company’s competitive edge, particularly in terms of key performance metrics such as power and range per dollar. Despite a challenging start to 2025 marked by declining sales in Europe and China, as well as backlash stemming from CEO Elon Musk’s controversial government job-cutting campaign, Wood’s faith in Tesla’s long-term potential remains unwavering.
As of March 24, Tesla continues to hold the top position in Ark’s Innovation ETF, representing 10% of the fund’s $5.8 billion in assets. This marks a decrease from its nearly 16% allocation at the end of 2024. Wood, who gained prominence for her bullish calls on high-growth tech stocks like Tesla, Zoom, and Roku during the pandemic, saw her flagship fund peak at over $60 billion in assets amid the 2021 retail trading frenzy.
In conclusion, Cathie Wood’s steadfast belief in Tesla’s trajectory underscores her confidence in the company’s ability to innovate and dominate the EV market in the coming years. With a strong focus on disruptive technologies and a keen eye for promising investments, Wood’s endorsement of Tesla as a long-term growth play is a testament to her track record as a forward-thinking investor.