Cathie Wood Reaffirms Tesla $2,600 Target Despite 39% Stock Decline

Ark Invest Chief Executive Officer Cathie Wood expects Tesla (TSLA, Financials) to reach $2,600 per share within five years, citing autonomous driving and robotaxis as the company’s primary value drivers. The prediction, which implies nearly a tenfold increase from current levels, was shared during an interview with Bloomberg.

Wood said that Tesla’s intentions for humanoid robots, which she thinks are not yet reflected in the company’s worth, would provide further upside. With around $646 million in exposure, Tesla remains the top position in Ark Invest’s flagship product, ARK Innovation ETF.Reflecting a year-to-date decline of 39%, Tesla shares closed at $263.55 on Friday. Amid declining sales and increasing competition, especially in China, the stock has lost about 50% of its value since November 2024. While European deliveries declined 42% in the first two months of 2025, February sales in China decreased over 50%.Following public outcry over CEO Elon Musk’s political ties, the electric car manufacturer also struggles with reputation in North America and Europe. Musk has lately advised staff members not to sell shares, indicating internal worries about the direction of the business.Tesla’s delivery projections have been cut by analysts. Down from 387,000 a year earlier, first-quarter 2025 deliveries are expected to fall between 345,000 and 385,000 cars. Forecasts for the whole year are at 1.7 million units, down from 1.8 million in 2024.Citing poor fundamentals and more competition, HSBC cut its price target on Tesla from $165 to $130. Citing a second straight year of falling deliveries, J.P. Morgan decreased its projection to $120. Mentioning potential expansion linked to Tesla’s robotics goals, Piper Sandler, on the other hand, increased its target to $500.Though general attitude is cautious, Wood insists that her long-term value goal might be justified by improvement in artificial intelligence and self-driving technologies.

This article first appeared on GuruFocus.