Cathie Wood, the founder of Ark Invest, recently revealed that Tesla is her top stock pick during a podcast with Steven Bartlett on “The Diary Of A CEO.” Wood emphasized Tesla’s innovative edge, pointing to its convergence of robotics, energy storage, and artificial intelligence (AI).
Wood highlighted Tesla’s potential beyond its current offerings, particularly with its Optimus robots. She mentioned, “It is a convergence among three of our major platforms. So, robots, energy storage, AI.” Wood also alluded to the future potential of humanoid robots, stating that Ark Invest’s $2,600 price target for Tesla does not account for this additional revenue stream.
In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a recent Bloomberg interview. She mentioned that the Optimus robots developed by Tesla would drive productivity gains and create new revenue streams for the company.
Elon Musk, the CEO of Tesla, echoed Wood’s optimism in a CNBC interview, stating that Tesla expects to have thousands of Optimus robots working in its factories by the end of the year. Musk emphasized the rapid scaling of Optimus, aiming to reach millions of units per year as soon as possible.
Despite recent volatility in Tesla’s stock price, Wood and Ark Invest have maintained their faith in the company. Musk’s involvement with the White House DOGE office led to protests and boycotts, contributing to a stock decline of over 40% from December highs to March.
In response to investor concerns, Musk announced his intention to scale down his involvement with DOGE and refocus on Tesla during a May earnings call. Wood expressed confidence that the “brand damage” experienced by Tesla earlier in the year would not have a long-term impact.
Wood’s confidence in Tesla’s potential to redefine industries through AI and robotics remains strong. As Musk shifts his focus back to Tesla, the company’s advancements in Optimus and other innovations could propel it towards Wood’s ambitious $2,600 price target, solidifying Tesla’s position as a leader in the evolving tech landscape.