Intro

Tesla’s stock has been on a rollercoaster, but one of its biggest believers is throwing her hands up in excitement, not fear. Cathie Wood – the high-profile head of ARK Invest – just doubled down on her ultra-bullish Tesla stance in recent commentary. In a lively discussion, Wood shrugged off Tesla’s recent stock slump and painted a picture of a future filled with self-driving robotaxis, affordable EVs, and an eye-popping price target that has Tesla fans buzzing. It’s an outlook equal parts entertaining and insightful – much like Wood herself. So, what does Cathie Wood see on Tesla’s horizon that others might be missing? Let’s dive into her latest take on the EV titan, from surviving a 50% stock drop to conquering new markets (and even a cameo by Elon Musk himself).

Key Takeaways

• Unfazed by Volatility: Despite Tesla shares plunging roughly 50% from recent highs, Cathie Wood isn’t flinching. “Our outlook has not changed,” she says, calling the sell-off a short-term blip (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). She attributes the dip to broader economic angst and political drama rather than any issue with Tesla’s fundamentals (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider).
• Bullish Price Target Remains: Wood is sticking with ARK Invest’s bold target of ~$2,600 per share for Tesla in five years – roughly a 10x jump (or 800%+ rally) from current levels (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). This ambitious forecast remains intact even after the stock’s slide, underscoring her long-term confidence.
• Product Roadmap Optimism: Tesla’s upcoming lineup strengthens Wood’s case. A revamped Model Y and a long-awaited $30K affordable EV could hit the roads soon, expanding Tesla’s market. More importantly, the company’s robotaxi service is slated to launch in Austin, Texas by June – a move Wood believes could turbocharge Tesla’s growth (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider) (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider).
• Robotaxi = The Real Game-Changer: Wood argues that autonomous ride-hailing will be Tesla’s golden goose. She estimates robotaxis could make up 90% of Tesla’s value within five years thanks to software-like profit margins on self-driving services (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). In other words, Tesla’s future profits might come less from selling cars and more from selling rides.
• China’s Challenge, Tesla’s Edge: In China, Tesla faces fierce competition from BYD – a company Wood calls “fabulous” for its EVs (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). BYD even outpaced Tesla’s revenue last year (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). Still, Wood notes Tesla wins on key metrics like range and performance per dollar (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa), and crucially, BYD isn’t pursuing robotaxis yet (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). Even if Tesla hit road bumps in China, Wood’s bull case might hold thanks to lucrative robotaxi opportunities in Western markets.
• Betting on Autonomous Everywhere: Wood’s conviction in autonomous tech goes beyond Tesla. ARK Invest has begun “nibbling” on Baidu – buying small positions in the Chinese tech giant as a play on the self-driving boom (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu). Why? ARK believes autonomous mobility is a $8–10 trillion market opportunity in the next decade (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu), and Baidu’s robotaxi efforts could capture a slice of that globally (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu).

Section 1: Tesla’s Resilience Amid Volatility

Tesla’s stock has been nothing if not volatile. Case in point: over the past several months it tumbled about 50% from its peak, a drop that would send many investors running for cover (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). But in Cathie Wood’s view, this gut-churning plunge is just a speed bump on Tesla’s long road to growth. In a recent Bloomberg interview, Wood made clear she’s not sweating the downturn. “Our outlook has not changed,” she stated matter-of-factly, dismissing the sell-off as “very short term” noise (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). In other words, the ARK Invest CEO isn’t dialing back her Tesla bull case one bit.

What caused Tesla’s big dip? Wood doesn’t blame anything fundamental at the company – no demand crisis or tech failure – but rather a swirl of macro-economic jitters and political noise. She noted that fears of a weakening U.S. economy have cast a shadow over automakers in general, Tesla included (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). At the same time, Elon Musk’s high-profile forays into politics and policy have stirred up controversy, possibly alienating some consumers. (At one point, Tesla even faced incidents of vandalism and public protests from detractors upset with Musk’s political moves (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider).) Wood acknowledges these headwinds, but she’s confident they’ll pass. Economic cycles come and go, and political tempests eventually calm down. In the grand scheme, she argues, none of this derails Tesla’s core growth story – it’s just turbulence.

In fact, rather than back away, Wood saw the sell-off as an opportunity. She revealed that ARK Invest actually added to its Tesla position during the recent weakness (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). (When life gives you a Tesla dip, Wood buys more Tesla!) As of this week, Tesla makes up about 11% of ARK’s flagship innovation fund – a sizeable bet on a rebound (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). And she’s not alone in her conviction. None other than Elon Musk himself recently bolstered morale by singing Wood’s praises. In an employee all-hands meeting, Musk encouraged staff to hold onto Tesla stock for the long haul. The future, he said, is bright – and as proof he quipped that “some people, like Cathie Wood at ARK Invest, do see the future” (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). Hang on to your stock, Musk urged (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). It’s not every day the CEO name-drops an investor to back up his point, but it underscores how closely Wood’s vision aligns with Tesla’s own leadership. Volatility be damned – in Cathie Wood’s eyes, Tesla’s still on track and speeding ahead.

Section 2: Big Bets on the Future – Model Y, Affordable EVs, and Robotaxis

If the recent past has been bumpy for Tesla, the future looks full of open road (at least according to Cathie Wood). She is quick to point out that Tesla’s pipeline of products and services has never been stronger – and these are what underpin her unwavering bullishness. First up is Tesla’s vehicle lineup, which is about to get some exciting upgrades. Wood highlighted that Tesla is launching a refreshed Model Y soon (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). The Model Y is already a bestseller, and a slick new update could rev up sales further, especially as consumers gravitate toward SUVs. Even more eye-catching is the long-rumored “affordable Tesla” that Musk has teased for years. Cathie Wood thinks this compact EV – often dubbed the “$25k Tesla” in fan circles – is finally on the horizon. In her interview, she speculated Tesla could price it around $30,000 and absolutely dominate the entry-level luxury market with it (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). After all, there’s huge pent-up demand for a more budget-friendly Tesla. If Elon Musk can deliver a $30K EV with Tesla’s badge and tech, it could be a game changer for volume. Wood clearly sees these new models feeding Tesla’s growth engine (and soothing any demand concerns raised by skeptics).

But vehicle sales are only one part of Wood’s excitement – and truth be told, it’s not the part that really makes her eyes light up. The centerpiece of Cathie Wood’s Tesla thesis is something often talked about but yet to fully materialize: robotaxis. Tesla has been developing full self-driving technology for years, and now the company plans to launch a robotaxi rideshare service in Austin, Texas as soon as this June (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider). This isn’t just another app or feature – it’s Tesla effectively stepping into the realm of Uber (but with Teslas that drive themselves). Wood is most bullish about this move. Why? Because if Tesla cracks autonomous driving at scale, it could transform the business model from a typical car manufacturer to a high-margin, software-as-a-service powerhouse.

Cathie Wood put some astounding numbers behind this vision. She estimates that Tesla’s autonomous ride-hailing network – once up and running – could account for 90% of the company’s total value within five years (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). Yes, you read that right: in Wood’s view, almost all of Tesla’s worth could come from services that barely exist yet today. What justifies that 90% figure is the economics of robotaxis. Instead of earning a one-time profit on selling a car, Tesla could earn recurring income on each self-driving car in the robotaxi fleet, potentially raking in far more per vehicle over its life. Wood points out that selling self-driving software rides has much fatter margins than selling the cars themselves (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). It’s like comparing a one-off hardware sale to a SaaS (software-as-a-service) subscription – Wall Street generally values the latter much more richly. Tesla could eventually charge riders or license its autonomous tech, turning its cars into money-making machines even after they’re sold. This prospect has Wood (and ARK) seeing dollar signs. In fact, it underpins ARK Invest’s famously aggressive price target for Tesla.

ARK’s research forecasts Tesla’s stock could hit $2,600 in the next five years (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). That would be roughly a 10-fold increase from today’s stock price – a stunning ascent that only makes sense if one believes Tesla will revolutionize transportation. Wood hasn’t backed off this target one inch; she reaffirmed it in her latest commentary (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). And notably, she mentioned that $2,600 is before even considering some of Tesla’s more futuristic projects, like its humanoid robot Optimus. (Tesla’s working on robots too – is there anything Elon isn’t working on?) Those humanoid robots, now walking around Tesla labs, could add even more upside in Wood’s view (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). But to keep things grounded, her $2,600 target is primarily driven by the robotaxi opportunity and Tesla’s core EV business growth.

Bottom line: Cathie Wood is effectively betting that Tesla will morph from a car seller into an autonomous platform provider. New car models like the refreshed Model Y and the potential $30K EV will keep Tesla’s sales humming. Yet it’s the self-driving Tesla Network of robotaxis that she believes will really send the company’s value into the stratosphere – and she’s willing to stake her reputation on that bold bet.

Section 3: The China Question

No conversation about Tesla is complete without discussing China – the world’s largest EV market and a massive growth driver for Tesla in recent years. However, China is also the home turf of Tesla’s fiercest competitor: BYD, a Chinese automaker that has been on an absolute tear. So, how does Cathie Wood see the China puzzle playing out for Tesla’s story? With a mix of respect for the competition and confidence in Tesla’s unique edge.

First, Wood gives credit where it’s due: BYD is a formidable rival. “We’re looking at the BYD cars, and they are fabulous,” she told Bloomberg, praising the Chinese EV maker’s fit, finish, and design (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). Indeed, BYD’s performance has been impressive. The company’s revenue outpaced Tesla’s in 2024, and it has rolled out innovations like ultra-fast chargers (four times more powerful than Tesla’s) that can juice up an EV in just five minutes (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). In terms of scale and execution, BYD has shown it can go toe-to-toe with Tesla in the electric car arena. Wood acknowledges all this – BYD is a real force.

However, Tesla isn’t exactly ceding the race. Wood quickly adds that when it comes to metrics like driving range and power for a given price, Tesla is still at or near the top of the pack (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). In other words, Tesla’s vehicles remain highly competitive on the technology and performance front, even if BYD is matching them in volume. This is crucial in markets (like the U.S. and Europe) where consumers and regulators pay close attention to range and efficiency. Wood’s take is that Tesla’s brand and tech still give it an edge in many segments, which will help it fend off challengers.

But the biggest differentiator in Wood’s mind between Tesla and BYD comes down to one word: Robotaxi. BYD may be leading in EV sales, but, as Wood notes, “if you layer in robotaxi” capabilities, Tesla pulls way ahead – because BYD has not seized that opportunity, at least not yet (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). Tesla’s aggressive push into autonomous driving could thus become a trump card, especially outside of China. Wood believes that Tesla and BYD can both thrive in the global EV market (there’s room for more than one winner when nearly 100 million cars are sold annually). But Tesla is playing a different game by aiming to build a self-driving fleet. In five years, she estimates Tesla’s robotaxi business will be so large and high-margin that it could dwarf the traditional car business (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). BYD, on the other hand, is (for now) sticking to the conventional model of selling electric cars to drivers.

So, what if the worst-case scenario happened – say, Tesla lost significant ground in China or faced regulatory roadblocks there? Would Cathie Wood’s bull case fall apart? Wood concedes that China is very important to Tesla, given the size of the market and Tesla’s big Shanghai factory. However, she seems optimistic that Tesla can navigate that market, and even if challenges arise, Tesla’s fortunes don’t hinge on China alone. The West – especially the U.S. and Europe – remains an incredibly lucrative arena for Tesla, particularly for autonomous ride-hailing. The logic is that even if Chinese competition eats into Tesla’s vehicle sales or margins in Asia, Tesla could still win big by deploying robotaxis in the West, where it faces less state-backed competition and can reap outsized profits. After all, operating robotaxi services in North America or Europe would mean Tesla keeps a large chunk of the revenue per ride (acting as the platform), essentially a software business on wheels. Those software-like margins can be enormous (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa), potentially more than compensating for tighter margins or lower share in China.

Wood also hinted that Elon Musk’s global persona might be an asset. Musk has cultivated relationships in China (he’s practically a celebrity there, and even brought his mother, Maye Musk, as a sort of goodwill ambassador on visits). This soft diplomacy could help Tesla maintain a foothold. But even putting that aside, Wood’s confidence in Tesla isn’t China-dependent. She sees Tesla and BYD both succeeding in EVs; however, with Tesla additionally capturing value from autonomy, it’s a win-win scenario for Tesla’s narrative. If Tesla keeps growing in China, great – that’s upside. If China proves tough, Tesla’s robotaxis elsewhere could carry the day. To sum it up, Cathie Wood isn’t too worried about the China question. Tesla’s story, in her eyes, is bigger than any single country – it’s about leading the next era of transportation worldwide.

Section 4: Baidu and the Autonomous Mobility Race

Cathie Wood’s enthusiasm for autonomous vehicles doesn’t stop at Tesla. In fact, her conviction in the robo-revolution is so strong that she’s even dipping her toes back into Chinese tech stocks – something ARK Invest had largely avoided in recent years. The company catching her attention? Baidu, often dubbed “China’s Google,” which has quietly become a major player in artificial intelligence and self-driving cars. Wood revealed that ARK has begun “buying in small positions” of Baidu stock (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu), a move that hasn’t gone unnoticed. (Translation: ARK is cautiously nibbling on Baidu, not gorging, reflecting a measured optimism.)

Why Baidu? To Wood, Baidu’s autonomous driving initiative – known as Apollo – holds considerable promise. Baidu has already launched robotaxi pilot programs in multiple Chinese cities, putting it at the forefront of autonomous mobility in China. At the Hong Kong summit where Wood spoke, she highlighted that Baidu could be positioned to grab a share of the global robotaxi pie, not just in China (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu). In fact, Wood emphasized that if Baidu can capture even a fraction of the autonomous taxi market beyond China (think Southeast Asia or other regions open to Chinese tech), it could unlock significant value that Baidu’s current stock price doesn’t reflect (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu). In other words, Baidu might be an underappreciated sleeper in the autonomous race – and ARK wants in early, albeit carefully.

This bullishness on Baidu is underpinned by the same reasoning as her Tesla thesis: the sheer size of the autonomous mobility opportunity. Wood estimates the global robotaxi market could scale up to $8–10 trillion in revenue within the next 5–10 years (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu). That is a staggeringly large number – roughly the equivalent of the current GDP of Germany and Japan combined. If she’s even in the ballpark with that forecast, the companies that lead in autonomous driving (and the data/services around it) could be in for explosive growth. Tesla is clearly Wood’s top pick for capturing a chunk of that $10 trillion potential. But she also sees room for others – and Baidu, with its advanced AI research and government support in China, could be one of those winners in the autonomous mobility race.

It’s telling that ARK Invest recently snapped up about 130,000 shares of Baidu across two of its funds (ARKQ and ARKW), a stake worth roughly $12 million at the time of purchase (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu). This isn’t a huge bet by ARK’s standards (especially compared to its Tesla holdings), but it signals a notable shift: Wood is willing to wade back into Chinese equities when the right innovation story appears. Baidu’s strategy – combining search/data, cloud AI, and now self-driving taxis – evidently has caught her eye. Wood described Baidu’s cars and strategy with genuine excitement, noting that Baidu is already doing in China what Tesla aspires to do globally: operating robotaxis at scale. The difference is Tesla has a clear path in Western markets, whereas Baidu’s expansion might be more regional. Still, ARK’s bet implies confidence that Baidu will play a meaningful role in the autonomous future, perhaps partnering internationally or exporting its model beyond China eventually.

For investors watching ARK’s moves, this is a fascinating development. Cathie Wood loading up (even modestly) on Baidu suggests that the autonomous revolution is a multi-front battle – not just Tesla versus the traditional automakers, but also big tech firms like Baidu bringing their own firepower. It reinforces Wood’s overarching theme: the next era of transportation could spawn several big winners, and she intends to have a stake in the most promising ones, wherever they may be.

Closing Thought

Cathie Wood’s latest commentary on Tesla is a reminder that investing is all about the future. While headlines blare about interest rates, quarterly delivery numbers, or Twitter controversies, Wood is gazing five to ten years down the road – and she likes what she sees. It takes a certain boldness (some might say chutzpah) to stick to a $2,600 price target after a stock has been cut in half, but Wood has earned a reputation for looking past the noise. Love her or doubt her, she’s laying out a vision of Tesla not as just a car company, but as a dominant force in software, transportation-as-a-service, and even robotics.

For Tesla investors, the takeaway is both thrilling and challenging: the real payoff may come from businesses that are only just emerging now (robotaxis, AI-driven services, etc.), which means staying focused on the long term. There will be bumps on the road – be it economic downturns, political backlashes, or fierce competition from the likes of BYD. Yet, as Wood’s stance illustrates, those who can navigate the volatility and keep their eyes on the endgame could reap the rewards if her predictions pan out. Even beyond Tesla, the fact that ARK is scouting opportunities like Baidu underscores how transformative the autonomous revolution could be across the globe.

In the end, Cathie Wood is sending a clear message: buckle up, because the ride might be wild, but the destination could be extraordinary. If Tesla truly realizes the robotaxi revolution – and companies like Baidu accelerate the autonomous race – we’ll be entering a new age of mobility (and potentially a new golden age for investors in the space). As for now, Tesla’s journey continues amid twists and turns. But with believers like Wood in the passenger seat, you can bet the confidence in the driver (well, the self-driver) remains strong. After all, as Elon Musk said quoting Wood’s outlook, those who “see the future” aren’t letting a little turbulence knock them off course (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa). For Tesla and its investors, that future can’t come soon enough.

Sources: Cathie Wood Bloomberg interview and commentary (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider) (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider) (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa) (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa) (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa) (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu) (All because of RoboTaxi, “Wooden Sister” insists Tesla will “10 times in 5 years” and buys Baidu), Business Insider and Bloomberg reports on ARK Invest’s Tesla and Baidu outlook (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa) (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa) (Tesla Stock Price Bull Case: 800% Rally in 5 Years, Says Cathie Wood – Business Insider) (Cathie Wood: BYD cars are ‘fabulous,’ but Tesla is still competitive | Business Insider Africa).