Cathie Wood predicts a tenfold increase in Tesla's stock price due to autonomous taxi potential.

July 17, 2024

Cathie Wood believes that Tesla Inc (NASDAQ:TSLA) could potentially see a tenfold increase in its stock price due to its focus on launching an autonomous taxi platform. Wood, the founder of ARK Invest, views autonomous taxis, or Robotaxis, as a massive global revenue opportunity estimated at $8 trillion to $10 trillion.

In a recent interview with Bloomberg, Wood emphasized that autonomous taxi platforms represent the largest AI project currently in development. ARK Invest has valued Tesla based primarily on its potential in autonomous driving, with Wood expressing confidence that the stock has significant room for growth.

Despite a delay in Tesla’s planned Robotaxi unveiling until October, Wood believes that CEO Elon Musk aims to reveal something even more impressive than originally anticipated. She anticipates Tesla becoming a leader in the US autonomous taxi market, emphasizing the substantial scale and profitability of the opportunity.

Tesla holds a prominent position in the Ark Innovation ETF, accounting for over 15% of the portfolio. With the stock trading at around $252 on Wednesday, reflecting a 1.5% increase year-to-date, Wood remains optimistic about Tesla’s future prospects in the autonomous taxi sector.