Was Cathie Wood Right About Tesla (TSLA)?

We recently published Top 10 Analyst Calls on Trending Stocks You Shouldn’t Miss. Tesla, Inc. (NASDAQ:TSLA) is one of the major analyst calls.

During a CNBC interview on May 9, Ark Invest CEO Cathie Wood reiterated her $2,600 price target on Tesla and justified her case for the EV company. The stock was trading at $298 at the time.

“Our target in 5 years of 2030 again is $2,600, and our confidence in that number has gone up now that Tesla is commercializing robo taxis in August, in June. What we don’t have in that number and what is happening faster than we expected—and as you know we’re very focused on learning curves and how quickly new technologies are going to evolve—humanoid robots. And Elon has been talking about that market being bigger ultimately than the robo taxi market, and he talks about Tesla being number one globally when it comes to humanoid robots. Also, Elon says that China is number two to 10, and so we have to get moving on that score as well. We think that’s a $26 trillion revenue opportunity split between home and industrial in the next 5 to 10 years. It’s going to be a huge market. And the reason Tesla is ahead of the game is we’re talking about the three tech—the three platforms it’s already innovating on: robots, robo taxis are robots, energy storage—they will be electric—and AI.”

Tesla Inc (NASDAQ:TSLA) is trading at $350 as of September 8.

Baron Focused Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles (EVs), solar products, and energy storage solutions alongside the development of advanced real-world AI technologies. Shares fell due to declining analyst expectations for auto delivery volume and margins in 2025 as a result of 1) a refresh of the Model Y, its highest volume vehicle and the world’s best selling car in 2024; 2) Elon Musk’s controversial role in the Trump administration; and 3) regulatory changes that could pose potential operational challenges. Despite these headwinds, we remain confident in Tesla’s long-term growth, underpinned by secular trends in EVs and energy storage adoption, a compelling product line, its leading cost structure, and cutting-edge technology. A Model Y refresh alongside the debut of new mass-market models should boost demand. Over time, we expect the political pressure to fade, while Tesla’s AI ambitions—a robotaxi service launching this year and a fast-growing humanoid program—hold the promise of transforming its growth story.”

While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.