Investing.com-- Cathie Wood’s Ark Investment remains bullish on Tesla Inc (NASDAQ:TSLA) and sees the electric vehicle maker racing to $2,600 per share in five years, the tech investor said in a Bloomberg interview on Tuesday.
Wood told Bloomberg that she expects Tesla’s robo taxis to be the company’s biggest value driver in the next five years, and that the share price was not even factoring in Tesla’s plans for humanoid robots.
Wood’s forecast predicts Tesla’s valuation at nearly 10 times from current levels, as the EV maker grapples with a severe drop in valuation over the past four months. The $2,600 forecast has been raised by Ark in the past.
Tesla is the biggest component of Wood’s flagship ARK Innovation (NYSE:ARKK) exchange-traded fund, which holds about $646 million worth of shares in the EV maker. Tesla is also by far Ark’s biggest holding across its other ETFs, according to data from Cathie’s Ark.
Tesla is trading down nearly 27% so far in 2025, having lost as much as 50% of its value since November.
The drop comes amid a storm of negative factors, chiefly dwindling sales and high competition in top market China.
Public outrage over CEO Elon Musk’s role in the Donald Trump administration also appeared to have eroded Tesla’s brand image, denting Tesla’s sales in North America and Europe.
Musk had last week pleaded with Tesla employees to not sell their shares in the firm, amid what appear to be tough times for the EV maker.
Musk has repeatedly touted self-driving, artificial intelligence, and robotics as the company’s next set of growth drivers. But Tesla faces competition and headwinds on this front as well, especially from Chinese players such as BYD (SZ:002594).