After Tesla (TSLA) reported a 24% drop in income for the first quarter of 2023, shares tumbled Thursday and Cathie Wood – with her firm, Ark Invest – swooped in, buying up more than 250,000 shares of Tesla at a valuation of around $42 billion.
DONT MISS: Cathie Wood's Firm Has Changed Its Predicted Future Stock Price for Tesla
Ark Invest released its latest price target on Tesla on Thursday, anticipating that the car manufacturer will be worth $2,000 per share in 2027.
“We think that the robotaxi opportunity globally will deliver $8 to $10 trillion in revenue by 2030 and is one of the most important investment opportunities of our lifetimes,” Wood told CNBC in an April 20 interview. “One of the reasons for that is it is going to save lives. Autonomous driving is going to take away the human error, we believe.”
Elon Musk said in Tesla’s earnings call that he plans to bring a robotaxi – with neither steering wheel nor pedals – to market by the end of 2024, despite hurdles in development, testing, production and state-by-state regulation.
Tesla stock rose to around $164 per share Friday morning, less than 10% of Wood’s predicted value.
Despite Wood’s bold valuation of the automaker, many investors have taken to Twitter to express their skepticism of Ark Invest’s prediction.
One user said the move feels “disingenuous to your investors.”
