Cathie Wood Sticks With Tesla, Predicts $2,600 Stock Price

Cathie Wood’s Ark Investment Management LLC remains highly optimistic about Tesla Inc., projecting that the stock could surge to $2,600 within five years—nearly 10 times its current value.

‍

In an interview with Bloomberg TV, Wood emphasized that Tesla’s future value will be driven primarily by its robo-taxi business, which she expects will contribute to 90% of the company’s worth over that period. Additionally, she noted that Tesla’s advancements in humanoid robotics have not yet been included in Ark’s price target projections. Speaking on the sidelines of the HSBC Global Investment Summit in Hong Kong, Wood reaffirmed her confidence in Tesla’s long-term potential.

‍

Despite growing competition, Wood argued that Tesla remains strong against Chinese rival BYD Co., particularly when comparing factors like range and power relative to cost. Although BYD surpassed Tesla in sales last year, bringing in over $100 billion in revenue, she believes Tesla still holds a competitive edge in key areas.

‍

Tesla continues to be the largest holding in Ark’s flagship ARK Innovation ETF, representing 10% of its $5.8 billion in assets as of March 24, based on company data. However, this is a reduction from nearly 16% at the end of 2024, acCathie Wood’s Ark Investment Management LLC remains highly optimistic about Tesla Inc.’s future, predicting that the stock could reach $2,600 per share within the next five years—a nearly tenfold increase from its current price.

‍

Speaking at the HSBC Global Investment Summit in Hong Kong on Tuesday, Wood told Bloomberg TV that she expects Tesla’s autonomous robo-taxi business to drive 90% of the company’s value over that period. She also noted that Ark has yet to factor in Tesla’s ventures into humanoid robotics, which could further contribute to the company’s long-term growth.

‍

Wood remains confident that Tesla is still competitive when compared to Chinese electric vehicle giant BYD Co., citing key performance metrics such as range and power relative to price. Although BYD surpassed Tesla in global EV sales, crossing the $100 billion revenue mark last year, Wood believes Tesla maintains an edge in technological innovation.

‍

Despite fluctuations in its stock price, Tesla continues to be the largest holding in Ark’s flagship ARK Innovation ETF. As of March 24, the EV maker accounted for 10% of the ETF’s $5.8 billion in total assets, based on data from Ark’s website. However, this represents a decline from the nearly 16% allocation Tesla held in the fund at the end of 2024, according to an earlier fact sheet published by the firm.

‍

Ark Investment Management has long been bullish on Tesla’s potential. In a 2023 analysis, the firm projected that Tesla’s stock could climb to $2,000 per share by 2027, driven by the company’s ability to capture market share from traditional automakers. Wood reiterated this optimism in July, stating that the development of an autonomous taxi network could be a major catalyst, propelling the stock price to roughly ten times its current level.

‍

However, despite these lofty projections, Tesla’s stock has struggled in 2025. Although it has seen some recovery over the past four trading sessions, reaching approximately $278 per share, the broader trend this year has been downward. The company has faced significant challenges, including declining sales and shipments in key markets such as Europe and China. Additionally, Tesla’s billionaire CEO, Elon Musk, has encountered political headwinds, both internationally and domestically.

‍

In the U.S., Musk’s policy decisions have sparked controversy, particularly his Department of Government Efficiency’s recent move to eliminate thousands of government jobs. The resulting backlash has added to the company’s uncertain outlook, compounding the effects of softer demand in major EV markets.

‍

Wood gained widespread recognition during the COVID-19 pandemic for her bold investment calls, particularly in high-growth tech companies such as Tesla, Zoom Video Communications Inc., and Roku Inc. Her aggressive bets on innovation-driven stocks attracted a loyal following among retail investors, pushing Ark’s assets under management to a peak of over $60 billion in early 2021.

‍

While her investment strategies have faced criticism during periods of market downturns, Wood remains steadfast in her conviction that disruptive technologies will drive exponential growth in the coming years. Tesla, she argues, remains at the forefront of this transformation, particularly as it advances in autonomous mobility and artificial intelligence.

‍

Despite recent setbacks, Wood and her team at Ark Investment Management continue to view Tesla as a long-term winner, betting that its innovations will ultimately outweigh short-term challenges in sales and stock performance according to Ark’s publicly available reports.

‍

Ark previously estimated in a 2023 analysis that Tesla’s stock would climb to $2,000 per share by 2027, largely due to the company capturing market share from traditional automakers. In July, Wood reiterated her belief that an autonomous taxi network could be the key driver behind a tenfold increase in Tesla’s stock price.

‍

However, Tesla’s stock has struggled in 2025, despite a recent rebound over the past four trading sessions, bringing it to around $278 per share. The company has seen steep declines in sales and shipments across critical markets such as China and Europe. Meanwhile, its billionaire CEO Elon Musk is facing increased political resistance, while his Department of Government Efficiency’s decision to eliminate thousands of government jobs has sparked domestic controversy.

‍

Wood rose to prominence during the COVID-19 pandemic, making bold predictions about high-growth technology stocks such as Tesla, Zoom Video Communications Inc., and Roku Inc. Many retail investors embraced her investment philosophy, fueling Ark’s assets under management to a peak of over $60 billion in early 2021.

‍