People tend to listen to when talking Cathie Wood Tesla(Nasdaq: Tsla); The founder and CEO of Ark Invest was one of the most vocal sponsors of Tesla in the middle of 2010 to the end, before the company became electric vehicles, energy storage, autonomous driving and robotics company, which is now with a $ 1 trillion market.
Her Tesla Call raised her exemplary fund – Ark Innovation ETFto the glory of Wolstry. It remains just as optimistic about Tesla.
Cathie Wood said the upcoming Tesla Robotaxi business, which drives a park of autonomous Tesla vehicles, will be a game converter for shares. In a recent Bloomberg television interview, she reiterated her forecast that the shares would increase to $ 2,600 in five years and more than seven times the current price.
Cathie Wood was previously right about Tesla, but its brave forecast has a big problem this time.
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Tesla started the battery electric car (BeV) industry. Her success showed that completely electric vehicles were promising and consumers would benefit them. Her success sent old brands that created Bev models and built the way for new electric vehicles for beginner companies.
However, Tesla is not an autonomous driving pioneer or leader. This difference goes to Waymo, an Alphabet (Google) subsidiary that started as a Google project in 2009. And since 2022. March Offered paid, without drivers.
During his 2025 Alfabet noted the quarter -quarter -quarter -quarter -quarter -quarter -quarter -quarter -quarter -quarter -quarter -quarter -quarter -week -olds compared to five times more than five times a year ago. Elon Musk, CEO of Tesla, has recently confirmed that its Robotaxi service will be launched by the end of June, starting with about 10 vehicles in Texas.
Tesla expects to expand quickly. This is probably necessary to catch Waymo and achieve the Cathie $ 2600 price goal in five years.
This can be a high order. In a recently published interview with Ashok Elluswamy, Tesla’s self -driving manager, even acknowledged that Wayo was probably for several years by overtaking Tesla independently.
Three years after its launch, Waymus operates independently in four major cities, and two more will soon appear. This does not mean that Tesla cannot grow faster Robotoxi. However, it is worth noting that Tesla’s self -driving technology has reached only level 2 autonomy, which requires constant human driver care. Due to its level 4 autonomy, Waymo can offer without drivers.
It is hard to imagine that Tesla is rapidly expanding with Robotoxi, without a higher level of autonomy. There may be obstacles to state level regulation, and all robotaksi crashes can be a huge responsibility, especially in the event of a passenger injury or death. Ways gradual development looks like a safe and intellectual route. This is also expected by Tesla and Robotaxi.
This system is difficult to get to the Cathie Wood five-year-old $ 600 price target.
The alphabet did not distinguish Waymo’s finances. Instead, this includes the Waymo segment “Other Bets”. 2025 In the first quarter, others have earned $ 450 million in alphabetical betting and announced $ 1.2 billion.
I don’t want to think anything, but it seems safe to say that Ways is nowhere large enough to work profitably, not to mention the needle for the alphabet.
Therefore, it is not enough that Tesla must increase Robotoxi (and fast) to 250,000 rides to catch Waym. It also has to grow a much larger Robotoxi to achieve the size needed for profitable operation, not to mention the value of an arch -expected company – $ 8.2 trillion in five years.
The Ark projection is 63% of Tesla’s revenue by Robotaxi, so the purpose of the Cathie Wood price is fundamentally distinguished if Robotaxi does not expand quickly enough.
It is never wise to forgive a successful company like Tesla, especially with Elon Musk as CEO. However, investors are unlikely to expect such a large return over the next five years without much evidence that Robotaxi manages to an unprecedented level.
Tesla can ever reach $ 2,600, but it will probably take more than five years.
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Ark Invest Cathie Wood believes Robotaxi will increase Tesla up to $ 2,600 in 5 years. There is only 1 problem with that. initially released by The Motley Fool
