Ark's Cathie Wood once again hypes Tesla – expecting her darling stock to hit $2,000 in five years thanks to a robotaxi boom
- Famed money manager Cathie Wood has made an eye-popping prediction about Tesla, once again.
- The Ark Invest CEO said the electric vehicle-maker's stock could hit $2,000 by 2027 on a robotaxi boom, per CNBC.
Ark Invest's Cathie Wood has just made another wild prediction – and it's about her darling electric-vehicle stock, Tesla.
In an interview with CNBC, the famed money manager said Elon Musk's carmaker could hit $2,000 by 2027, marking an eye-popping 1,127% increase from Tesla's closing share price on Thursday of $162.99.
Under her bear-case scenario, Wood sees Tesla stock hitting $1,400, while her bull case sees the automaker surging to $2,500.
Her outlook is based on Tesla potentially taking advantage of an expected robotaxi boom, in what Wood believes could deliver $8 trillion to $10 trillion in revenue by 2030. "It is one of the most important investment opportunities of our lifetimes," Wood said of robotaxis.
"We want Tesla to scale its unit. Each one of them now presents the potential for robotaxi and robotaxi fleet," Wood said. "We think that it is very smart to maximize units," she added, per CNBC.
Wood's call comes after Tesla released its first-quarter earnings results that fell short of Wall Street's expectations. The carmaker met analysts' quarterly revenue targets but reported slimmer profit margins, following its aggressive price cuts in recent months.
Tesla is among Wood's most favoured stocks. The company is the biggest holding in Ark's flagship exchange-traded fund, Ark Innovation ETF, with a 9.28% weighting.
Moreover, her bullish forecast for Tesla isn't the first one. Wood, renowned for her wild predictions about Musk's carmaker and bitcoin, made a head-turning call in 2018 that Tesla would hit $4,000 in five years.
Her prediction came true 2 years early, with Tesla hitting the $4,000 range in early 2021 on a split-adjusted basis. The stock's price however has since fallen dramatically from those highs.
In February, the money manager also made a monster forecast for bitcoin, predicting the world's largest cryptocurrency could hit $1.5 million by 2030.