Cathie Wood, the influential investor behind Ark Invest, has made a bold prediction for Tesla (TSLA), calling for its stock price to soar to a staggering $2,600 per share by 2029. This bullish outlook isn’t just a hunch; Ark Invest released an updated open-source model that factors in various scenarios, suggesting a potential range of $2,000 to $3,100 per share.

For context, Tesla currently trades around $182.50. If Wood’s base case materializes, it would represent a monumental 1,500% increase in the stock price over the next few years. Even the “bear case” scenario of $2,000 translates to a staggering 1,000% jump, while the optimistic “bull case” suggests a mind-blowing 1,600% growth.

Wood’s confidence stems from her belief in Tesla’s potential beyond just electric vehicles (EVs). While EVs are expected to contribute significantly, Ark Invest sees the company’s robotaxi business as the true game-changer. They anticipate robotaxis to generate much higher margins, potentially accounting for nearly 10% of Tesla’s earnings and a quarter of its total sales by 2029.

This bullish stance on Tesla isn’t new for Wood. She’s a long-time supporter of the company and has one of the largest allocations towards Tesla among the 330+ ETFs that hold the stock. Notably, Ark Invest’s flagship ARK Innovation ETF (ARKK) boasts the second-highest weighting for Tesla (excluding leveraged and single-stock focused funds) at a hefty 11.80%. Only the Consumer Discretionary Select Sector SPDR Fund (XLY) holds a larger position in Tesla at 12.95%.

Wood’s enthusiasm for Tesla extends beyond ARKK. Other Ark Invest ETFs, like ARK Autonomous Tech & Robotics ETF (ARKQ) and ARK Next Generation Internet ETF (ARKW), also have significant holdings in the EV giant. In fact, ARKQ lists Tesla as its top holding at 11.40%, while ARKW classifies it as its second-largest holding with a weighting of 8.49%.

While Wood’s prediction paints a rosy picture for Tesla’s future, it’s important to remember that it’s just one perspective. The stock market is inherently volatile, and reaching such lofty heights will require Tesla to overcome significant challenges and execute on its ambitious plans. Regardless, Cathie Wood’s Ark Invest has certainly placed a big bet on Tesla, and only time will tell if their vision for the company’s future comes to fruition.

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