Cathie Wood Predicts Tesla at $2,600 – Delusional or Genius?
ARK Invest head Cathie Wood recently doubled down on her bullish Tesla outlook, projecting a $2,600 price target within five years. Her justification? Robotaxis. She believes they will represent a whopping 90% of Tesla's value by then. This implies a massive market cap of around $8 trillion. Color me skeptical.
While Musk has been touting the robotaxi revolution for years, the reality on the ground seems far less rosy. Tesla’s European sales appear to be cratering, and even in the US, the brand is facing headwinds, with reports of vandalism and a customer backlash tied to Musk’s political activities. Even some Tesla bulls are calling for Musk to step down as CEO, citing his political involvement as a major distraction.
Furthermore, Tesla’s recent financial performance looks more like a traditional automaker than a disruptive growth company. Flat revenue growth in 2024, coupled with the Cybertruck’s ongoing recall issues, paint a concerning picture. Given these challenges, a price target of $26 seems more plausible than $2,600. While a complete collapse is unlikely, a significant correction seems overdue.
So, what do you think? Is Wood’s prediction simply outlandish, or is she seeing something the rest of us are missing? Is the robotaxi potential being underestimated? How much of an impact is Musk’s political stance having on the brand? And with all these factors at play, where do you see Tesla’s stock price in five years?
Cathie Wood Predicts Tesla at $2,600 – Delusional or Genius?
ARK Invest head Cathie Wood recently doubled down on her bullish Tesla outlook, projecting a $2,600 price target within five years. Her justification? Robotaxis. She believes they will represent a whopping 90% of Tesla's value by then. This implies a massive market cap of around $8 trillion. Color me skeptical.
While Musk has been touting the robotaxi revolution for years, the reality on the ground seems far less rosy. Tesla’s European sales appear to be cratering, and even in the US, the brand is facing headwinds, with reports of vandalism and a customer backlash tied to Musk’s political activities. Even some Tesla bulls are calling for Musk to step down as CEO, citing his political involvement as a major distraction.
Furthermore, Tesla’s recent financial performance looks more like a traditional automaker than a disruptive growth company. Flat revenue growth in 2024, coupled with the Cybertruck’s ongoing recall issues, paint a concerning picture. Given these challenges, a price target of $26 seems more plausible than $2,600. While a complete collapse is unlikely, a significant correction seems overdue.
So, what do you think? Is Wood’s prediction simply outlandish, or is she seeing something the rest of us are missing? Is the robotaxi potential being underestimated? How much of an impact is Musk’s political stance having on the brand? And with all these factors at play, where do you see Tesla’s stock price in five years?
- By allmaxh