Cathie Wood Doubles Down on Tesla, Eyes $2,600 Target Despite Market Slump

Ark Invest CEO Cathie Wood remains bullish on Tesla (NASDAQ: TSLA), predicting the electric vehicle giant’s stock could surge to $2,600 within five years. In a recent Bloomberg interview, Wood said Tesla's future lies beyond EVs, pointing to autonomous robo-taxis as the company’s primary growth driver. She also highlighted that Tesla's current valuation doesn’t yet reflect its ambitious plans for humanoid robots.

Despite Tesla’s nearly 27% decline in 2025 and a staggering 50% drop since November, Wood stands firm on her long-term forecast—a price target Ark Invest has maintained previously. She emphasized Tesla’s innovation pipeline, particularly in artificial intelligence and robotics, as key to unlocking exponential growth.

Tesla remains the top holding in Ark Invest’s flagship ARK Innovation ETF (NYSE: ARKK), which currently holds around $646 million worth of Tesla shares. The EV maker is also the largest position across Ark’s suite of ETFs, according to Cathie’s Ark data.

Tesla’s recent struggles stem from plummeting sales and rising competition, especially in China where domestic players like BYD (SZ:002594) are gaining ground. In North America and Europe, backlash over CEO Elon Musk’s involvement with the Trump administration has further impacted Tesla’s brand perception and sales.

In response to the turmoil, Musk recently urged employees not to sell their shares, signaling internal confidence in a rebound. However, challenges remain as Tesla navigates a crowded EV market and fierce AI competition.

Still, Wood believes Tesla’s long-term vision could deliver massive returns, banking on breakthrough tech and disruptive mobility solutions to drive its next growth phase.