Cathie Wood Tesla prediction: Cathie Wood sticks with Tesla, sees stock at $2,600 in 5 years

Wood said in an interview with Bloomberg TV that Tesla’s robo taxis will account for 90% of its value over that time. Tesla has initiatives in humanoid robots that Ark hasn’t even factored into the price prediction, she added on the sidelines of the HSBC Global Investment Summit in Hong Kong on Tuesday.

Tesla shares have slumped 31% this year, even after a rebound in the last four trading sessions. Sales and shipments have dropped precipitously in key markets including Europe and China, as its billionaire founder Elon Musk faced political pushback. Domestic discontent has also grown over his Department of Government Efficiency’s move to cut thousands of government jobs.

Tesla’s sales have fallen in 10 of the last 12 months in Europe with the carmaker struggling mightily at the beginning of this year. The company registered 16,888 new cars in February, down 40% from a year ago, according to the European Automobile Manufacturers’ Association.

Meanwhile, some analysts have also started bracing for overall sales to drop this year, rather than rebound from the first annual decline in more than a decade. UBS Group AG’s Joseph Spak and Evercore ISI’s Chris McNally each cut their full-year estimate for vehicle deliveries earlier this month. Chinese rival BYD Co. has overtaken Tesla in sales, topping $100 billion last year. Even a failure in China would only represent “a short-term hit” to Tesla’s stock and would not detract from Ark’s five-year price target for the stock, she said.

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“If you look at metrics like range and power for a given price, Tesla is very competitive, if not the most competitive, depending on the model of car,” Wood said. “Tesla and BYD are both in the lead from an EV point of view alone. If you are layering in robotaxi, of course BYD is not seizing the moment there, at least not yet.”Tesla remained the largest holding of her flagship ARK Innovation ETF, accounting for 10% of the $5.8 billion assets by March 24, according to information posted on the company’s website. That was down from nearly 16% at the end of 2024, according to a fact sheet posted on the website.While Wood has been widely known for her aggressive bets on disruptive technologies, her flagship fund has struggled in recent years. Even after an 82% surge in the two years through 2024, ARK Innovation ETF is still down 65% from its peak and has trailed the Nasdaq Composite index over five years.