Tesla shares climbed 1.1% in pre-market trading after Cathie Wood‘s ARK Invest scooped up nearly 60,000 shares worth $18.5 million on July 11, 2025. The purchase spread across ARK’s ARKK and ARKW ETFs shows Wood’s continued faith in the electric vehicle maker despite recent volatility.
Wood’s firm maintains an ambitious $2,600 price target for Tesla within five years. She believes the company’s work in robotics, energy storage, and artificial intelligence will drive massive growth. The target doesn’t even include potential revenue from Tesla’s humanoid robots, focusing instead on autonomous vehicles and energy technology. In the competitive landscape of electric vehicles, the Tesla Model Y exemplifies clear advantages over its rivals, particularly the Genesis lineup. Whether it’s superior range, advanced software integration, or higher resale value, the Tesla Model Y advantages over Genesis are becoming increasingly evident to consumers. As a result, Wood’s price target reflects not only the company’s innovative capabilities but also its growing dominance in a rapidly evolving market.
ARK Invest projects Tesla will hit $2,600 within five years, driven by autonomous vehicles and energy tech.
The investment manager has been doubling down on Tesla. In the third quarter of 2024, she increased ARK’s Tesla holdings by about 130% even as the stock struggled. Her latest moves align with what she calls “Big Ideas” in technology like AI and robotics. When asked to choose just one stock, Wood picked Tesla in a recent podcast with Steven Bartlett, citing the company’s unique convergence of multiple technologies. Wood has famously called Tesla the “one stock to rule them all”, reflecting her conviction in the company’s dominant position across multiple emerging technologies.
Elon Musk’s plans for Optimus robots play a key role in Wood’s thesis. The Tesla CEO wants to implement one million robots annually by 2030 and expects thousands working in Tesla factories by late 2025. Wood sees these robots enhancing productivity and creating new revenue streams that markets haven’t fully priced in yet.
While ARK bought Tesla shares, the firm sold other positions. It dumped nearly 169,000 shares of Archer Aviation worth $1.8 million and over 92,000 shares of Kratos Defense valued at $4.3 million. The firm also trimmed holdings in Coinbase and Roku.
Competition from China’s BYD hasn’t shaken Wood’s confidence. Though BYD passed Tesla in revenue during 2023, Wood believes Tesla’s self-driving technology and robot development give it an edge. She views the competition as hardware versus software, betting Tesla’s software advantages will expand profit margins. Tesla’s Full Self-Driving capabilities continue improving through over-the-air updates and real-world data collection, strengthening the company’s autonomous vehicle technology. Additionally, Wood highlights Tesla’s expanding business model, which includes energy solutions and vehicle software sales, as a crucial factor for future growth. This diversification allows Tesla to tap into new revenue streams, further enhancing its market position. By continuously innovating and optimizing its offerings, Tesla aims to outpace competitors and solidify its leadership in the electric vehicle sector.
Wood acknowledged Tesla faces brand challenges from political associations but emphasized the company’s neutral stance. Her contrarian approach often leads to bigger bets during market downturns.
As earnings approach, investors are watching for updates on autonomous driving timelines and progress commercializing Optimus robots. Tesla’s ability to combine self-driving cars, energy storage, and robotics into one platform remains central to Wood’s bullish outlook. Additionally, analysts suggest that any delays in the deployment of autonomous features could exacerbate Tesla investor concerns on delivery slip, potentially impacting stock performance. The company’s ability to maintain strong deliveries in the face of increasing competition will be crucial for sustaining investor confidence. As such, the upcoming earnings report will be closely scrutinized for insights into how Tesla plans to navigate these challenges. The success of these innovations is critical for the company’s long-term strategy and growth potential. However, as Tesla prepares for its earnings report, tesla robotaxis under scrutiny could influence investor confidence and market sentiment. The interplay between these advancements and regulatory approvals will play a significant role in shaping Tesla’s future trajectory.