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 highlighted Tesla’s innovative edge, pointing out the company’s convergence of robotics, energy storage, and AI.
Wood emphasized the potential of Tesla beyond its current offerings, particularly with its Optimus robots. She mentioned, “And it’s not stopping with robotaxis; there’s a story beyond that with humanoid robots, and our $2,600 number has nothing for humanoid robots. We just thought it’d be an investment, period.”
In June 2024, Ark Invest issued a $2,600 price target for Tesla, which Wood reaffirmed in a March Bloomberg interview. She projected that the stock would reach this level within five years, driven by the productivity gains from Optimus robots and the creation of new revenue streams.
Elon Musk, the CEO of Tesla, echoed Wood’s optimism in a CNBC interview, stating, “We expect to have thousands of Optimus robots working in Tesla factories by the end of this year, beginning this fall. And we expect to scale Optimus up faster than any product, I think, in history to get to millions of units per year as soon as possible.”
Despite facing recent volatility in its stock price, Tesla remains a promising investment. Musk’s involvement with the White House DOGE office triggered protests and boycotts, leading to a decline in the stock price. However, Musk announced his decision to scale down his involvement with DOGE to focus on Tesla, reassuring investors.
Wood and Ark Invest have maintained their faith in Tesla throughout the fluctuations in its stock price. Wood predicted that the “brand damage” Tesla experienced earlier this year would not be long-term. As Musk refocuses on Tesla, the company’s advancements in AI and robotics, especially with Optimus, could propel it towards Wood’s ambitious $2,600 target, solidifying Tesla’s position as a leader in the evolving tech landscape.