ARK Invest’s Cathie Wood explained her bullish stance on Tesla once again. Tesla shares dropped after a challenging first quarter. However, TSLA stock surged on Wednesday, proving Wood’s optimism was right on the money.
In an interview with Barron’s, Wood enumerated a few reasons ARK Invest sees a bright future for Tesla. She predicts that Tesla will launch a cheaper electric vehicle (EV), starting at around $30,000—half the price of a typical Model Y. “This will help bring affordability back into auto buying,” Wood said.
Tesla’s $30,000 EV model is expected to launch this quarter. However, Tesla is already refreshing its EV lineup and offering cheaper models. It debuted a Long Range All-Wheel-Drive Model Y “Juniper” in the U.S. on April 4, priced at $48,990 before a $7,500 tax credit.
Wood also touted Tesla’s upcoming robotaxi service, which she predicts will help consumers save upfront costs that would usually go to buying a new car. The ARK Invest CEO argues that Tesla’s robotaxi service would be cheaper than Uber and Lyft because it would save costs without a human driver.
Benchmark analyst Mickey Legg echoed Wood’s prediction in a recent note. Legg believes the negative narrative surrounding Tesla is exaggerated. The Benchmark analyst encouraged investors to look at the catalysts that could drive TSLA stocks up, like its AI developments.
Similar to Legg, Wood brushed off concerns about Elon Musk’s ties to Trump and negativity surrounding Tesla stock. “News cycles pass quickly nowadays, and the best cars are going to win.”
The ARK Invest CEO also shared her thoughts on Trump’s tariffs and how they would affect companies like Tesla.
“When businesses and consumers are scared, they’ll change the way they do things, and that’s usually good for the companies that are helping others do things better, cheaper, faster, more creatively, and more productively,” she said.
Wood noted that Tesla’s heavy North American sourcing will soften tariff blows. With affordability and tech in focus, Wood sees Tesla forging ahead despite Trump’s tariffs.
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