Ark Invest’s Cathie Wood said Wednesday she’s standing by her bullish thesis on Tesla and is buying the dip in the electric vehicle company as the stock sold off. “Tesla is going through a low right now related to the cycle,” Wood said on CNBC’s ” Last Call. ” “But when autonomous taxi networks, platforms kick in, as we think they will within the next two years … then what we’re talking about with Tesla is a reacceleration in growth and a huge increase in margins.” Tesla has certainly had a tough start in 2024. The EV stock has tumbled nearly 25% in five weeks. Its latest earnings report missed expectations and included a warning of stagnant vehicle volume growth . In reaction, several analysts slashed their investment ratings and lowered their price targets on the stock. Wood has been a longtime Tesla bull as the Elon Musk company is her flagship Innovation fund (ARKK )’s second biggest holding. Her conviction is centered around an accelerated shift to EVs as well as Tesla’s artificial intelligence capabilities. “We have been buying Tesla. There is so much negative psychology in the stock right now,” Wood said. “We think electric vehicles are going to continue to gain share and really take over the market in the next five years. And beyond that, robotaxis are going to change the landscape entirely.” TSLA 6M mountain Tesla shares over the past six months. The popular investor said she’s sticking with her call that her EV darling could hit $2,000 in five years, and she added that she is going to update the target. That valuation would translate into a more than $5 trillion market cap for Tesla. Wood is also confident that her other big holdings have more room to go. Some of her biggest holdings, including Coinbase , Roku, UiPath and Block , rallied significantly last year. “Our own stocks, which mostly are not the Magnificent 6 … they have corrected tremendously. They’re now starting to show earnings momentum and surprises on the upside, not just revenue, but also earnings,” Wood said. “We think they have a long way to catch up.”
