Cathie Wood Stands by Bullish Thesis on Tesla, Buys the Dip
Ark Invest’s Cathie Wood reaffirmed her optimistic outlook on Tesla and took advantage of the stock’s recent decline by purchasing more shares. In an interview with CNBC’s “Last Call,” Wood acknowledged that Tesla is currently experiencing a downturn in its cycle but remains confident that the company will experience a resurgence in growth and higher profit margins once autonomous taxi networks are fully operational within the next two years.
Tesla’s Recent Challenges
Tesla has faced significant challenges in 2024, with its stock plummeting almost 25% over five weeks. The company’s latest earnings report fell short of expectations and included a warning about stagnant vehicle volume growth. As a result, several analysts downgraded their investment ratings and lowered their price targets for Tesla.
Wood’s Conviction in Tesla
Despite the negative sentiment surrounding Tesla, Wood remains a steadfast believer in the company. She sees electric vehicles gaining market share and dominating the industry within the next five years. Additionally, Wood highlights Tesla’s artificial intelligence capabilities as a key factor contributing to her bullish thesis.
Price Target and Future Outlook
Wood maintains her prediction that Tesla could reach $2,000 per share within five years, which would result in a market capitalization exceeding $5 trillion. She also expresses confidence in her other major holdings, such as Coinbase, Roku, UiPath, and Block, emphasizing their potential for further growth as they demonstrate positive earnings momentum.
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