Cathie Wood is doubling down on Tesla (TSLA, Financial)—and not in a small way. In a fresh interview with Bloomberg, the Ark Invest founder reiterated her bold $2,600 price target for the EV giant over the next five years. That's nearly a 10x leap from current levels. The real driver? Not electric cars. Wood believes Tesla's future lies in autonomous robo taxis, which she says could account for 90% of its valuation. And that doesn't even include Tesla's humanoid robot ambitions—something Ark hasn't factored into its models yet.
But here's the tension: Tesla is having a brutal year. The stock is down 27% in 2025, and has lost half its value since November. Sales are sliding in China and Europe. Political drama tied to Elon Musk's government advisory role is generating backlash at home. Musk even asked employees not to sell their shares—an unusual move that reflects internal headwinds. Meanwhile, BYD has overtaken Tesla in global EV sales, intensifying the pressure from Chinese rivals.
Still, Tesla remains Ark's top holding, making up 10% of its flagship ARK Innovation ETF (ARKK, Financial). Wood—who became a retail investing icon during the pandemic for her tech-heavy bets—isn't backing down. She sees the long game: AI, robotics, and autonomy as Tesla's next phase. If she's right, today's skepticism could set up one of the biggest comebacks in recent market history.
