Cathie Wood, who leads ARK Invest as its Chief Executive Officer and Chief Information Officer, shared a forward-looking perspective on Tesla Inc. (NASDAQ:TSLA) and alongside it, SpaceX, reflecting on both companies' potential to redefine market expectations in the near future.
During a conversation with CNBC’s Andrew Ross, Wood revisited Tesla's performance across 2025, a year characterized by fluctuating fortunes. She acknowledged the company’s endurance through headwinds such as trade disruptions in April and a government shutdown episode, noting that ARK Invest has tailored its portfolio to emphasize its most confident positions in order to capitalize on unfolding opportunities.
Wood emphasized an evolving focus in Tesla's strategy, singling out the robotaxi concept as a particularly compelling avenue. The shift toward a recurring revenue stream from autonomous ride services could notably enhance Tesla's margin structure. Although the electric vehicle sector encountered obstacles, the anticipation surrounding robotaxis has amplified interest in Tesla’s future profitability and business model transformation.
In regard to SpaceX, another Elon Musk-led venture that Wood regards highly, she projected ambitious growth. She commented that SpaceX could emerge as the first space company to attain a trillion-dollar valuation upon going public, particularly as the company explores new arenas, such as implementing datacenters in orbit. ARK Invest is actively developing financial models based on this innovative prospect.
On wider economic themes, Wood addressed inflation and valuations by reflecting on historical precedents and the possibility that current market multiples might contract. Nonetheless, she expressed a hopeful outlook for inflation stabilization, influenced by reductions in oil and housing costs and the inherently deflationary influence of technological advancements.
These viewpoints arise amidst recent adjustments in ARK Invest’s Tesla holdings. The firm recently divested over 86,000 shares, monetizing approximately $37.8 million, following a prior December 2025 sale exceeding 124,000 shares valued at nearly $59.35 million. Despite these sales, Wood’s bullish forecast on Tesla’s autonomous driving and robotics prospects remains steady, underscoring her belief in the company’s long-term growth trajectory.
Previously, Wood articulated a striking price target for Tesla shares, estimating an increase to $2,600 per share by 2030. This estimate corresponds to a market capitalization of $8.19 trillion, assuming Tesla’s share count remains constant. Such projections continue to draw significant investor attention due to Wood’s history of influential calls on disruptive technology firms.
Market data presents a nuanced picture of Tesla’s stock performance. It currently stands with momentum in the 69th percentile range, signaling recent short-term consolidation combined with ongoing medium- and long-term upward trends, according to analyst rankings.
Key Points
- Wood highlighted Tesla’s resilience in 2025 despite external disruptions, focusing on high-conviction portfolio stock selection.
- The robotaxi initiative is poised to transform Tesla’s revenue structure, fostering margin improvement through subscription-like recurring revenues.
- SpaceX is positioned as a candidate for a trillion-dollar valuation, chiefly driven by novel ventures into placing datacenters in space.
- Economic optimism is grounded in expectations of easing inflation pressures and deflationary trends from technology adoption.
Risks and Uncertainties
- The electric vehicle market remains volatile and subject to trade and regulatory headwinds, evidenced by past disruptions in 2025.
- Market valuation metrics may face compression, introducing uncertainty regarding future stock multiples across sectors.
- The commercial viability of robotaxi implementations and space-based datacenter technology is currently speculative and reliant on technological and regulatory developments.
- Continued share sales by institutional investors such as ARK Invest could influence market perception and stock liquidity.