Ark Invest CEO Cathie Wood has predicted that the Tesla (TSLA) stock price will reach $2,600 in the next five years. The company’s Cybercab robotaxi and its autonomous ride-hailing services will fuel this surge.
Cathie Wood has long supported Tesla’s AI and Full Self-Driving (FSD) efforts, despite delays in reaching Level 4 or Level 5 autonomy. Her investment firm, Ark Invest, has a large stake in Tesla, Inc. (TSLA).
Elon Musk’s tech & AI-based electric automaker is on track to launch autonomous ride-sharing services in Austin, TX, in June this year. Tesla will use its steering-less Cybercab vehicles for this service.
According to Cathie Wood, as soon as Tesla starts its robotaxi service commercially, Wall Street analysts will have to add the value of an autonomous ride-sharing service into their stock price models.
“It’s a software-as-a-service (SAAS) model — very high margin — 80% plus for the platform companies, whereas the electric vehicle is 15, 20, 25% gross margins,” Cathie Wood put her bull case for Tesla on the table.
“The robotaxis [Tesla Cybercab] will account for 90% of the value of the company in 5 years — we’re on record saying we believe — in 5 years, the stock will hit 2,600 dollars — and that’s not even including humanoid robots,” she added.
Taking only the Cybercab robotaxi service into account, it’s going to add a 10X value to the Tesla stock price, Ark Invest’s Cathie Wood believes.
Cathie Wood admits that Tesla’s Optimus humanoid robot is getting integrated into the company’s product ecosystem much faster than her company and analysts expected.
She also thinks that the current political involvement of Elon Musk and his efforts at DOGE are going to have only a temporary effect on the company’s stock. As we reported yesterday, Tesla (TSLA) share price jumped around 12% in a single day. In the last week, the price has been up by ~20%. As of this writing, Tesla shares are trading at $281.10 (around 2:45 PM EST).
Since ride-hailing costs in the US & Europe are much higher compared to China, the robotaxi service is more relevant to the Western world than in China. In North America and Europe, Tesla’s Cybercab robotaxi service will have the most impact and revenue generation than in China, Cathie Wood thinks.
In addition to Austin, Texas, Tesla is also working to start a similar Cybercab robotaxi service in California and is in the process of obtaining required approvals.
Cathie Wood says Tesla’s future isn’t about EVs alone—it’s about autonomy. In her words, “If there’s one reason we still believe Tesla $TSLA can hit $2,600 in five years, it’s the robotaxi opportunity. That’s where 90% of the value will come from.” pic.twitter.com/vfY8ZGWG4W
— Wall St Engine (@wallstengine) March 25, 2025
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