Ark Investment Management LLC, owned by “Wooden Sister” Cathie Wood, is still optimisticTeslacompany and expects the stock to hit $2,600 in five years, nearly 10 times the current share price. Wood said in an interview that Tesla's self-driving taxis will account for 90% of its future value. She added on Tuesday at the HSBC Global Investment Summit in Hong Kong that Tesla’s plans for humanoid robots haven’t even been factored into Ark’s price forecasts yet.

Despite rebounding in the last four trading days, Tesla's stock price is still down 31% this year. Tesla's sales and shipments have plummeted in key markets as billionaire founder Elon Musk faces political headwinds. Its Government Effectiveness Department's move to cut thousands of government jobs has also stoked domestic discontent.

Chinese rival BYD's sales exceeded US$100 billion last year, surpassing Tesla in history. "If you compare indicators such as battery life and power of similarly priced models, Tesla is very competitive, if not the most competitive brand," Wood said. "From the perspective of electric vehicles alone, both Tesla and BYD are in the leading position."

According to information released on Ark’s official website, as of March 24, Tesla is still the largest holding of its flagship fund ARK Innovation ETF, accounting for 10% of the fund’s US$5.8 billion in assets. This proportion has dropped from nearly 16% at the end of 2024.

Wood sees "refreshes" to Tesla's most popular model, the Model Y, as well as an upcoming self-driving taxi service in Austin, Texas. She added that the launch of a low-cost model in the second quarter will help the stock overcome current difficulties.


In a 2023 analysis report, Ark estimated that Tesla's stock price will reach $2,000 by 2027 as Tesla seizes market share from traditional automakers. In July this year, she predicted that the establishment of the self-driving taxi platform would be a catalyst for Tesla’s stock price to rise approximately 10 times.

At the same time, Ark Investment is becoming increasingly optimistic about the Chinese market. The company increased its holdings of shares in U.S.-listed search engine operator Baidu on Monday, significantly increasing its Chinese asset allocation ratio.

Wood rose to prominence during the COVID-19 pandemic with his bold bets on pandemic darlings such as Tesla Inc., Zoom Video Communications Inc. and Roku. Retail investors embraced some of her views, pushing the size of her funds under management to a peak of more than $60 billion in early 2021.

While Wood is known for his aggressive bets on disruptive technologies, his flagship fund has underperformed in recent years. The ARKInnovation ETF is up 68% in 2023 and 8.4% in 2024, but is still down 65% from its peak and has lagged the Nasdaq Composite in five-year performance.