Cathie Wood Sees Tesla Being Worth Nearly $5 Trillion in 2026
The star investor of the moment is following her lucky star, with very bold new predictions made by her firm about Tesla (TSLA) – Get Tesla Inc Report The electric vehicle maker is Ark Investment Management’s biggest investment.
Ark seems to think that the value of its stake in Tesla will continue to increase since the fund has just raised the price at which it believes the stock will trade in 2026. And it’s huge.Tesla stock is expected to trade at $4,600 in 2026, according to the latest research report from Ark Investment Management. This is almost five times the price at which the stock of Elon Musk’s company is currently trading.
Ark, Cathie Wood Predict Maddening Numbers
Tesla shares closed at $985 on April 14 on Wall Street for a market cap of $1.01 trillion. If the shares soared and reached $4,600 in 2026 as predicted by Ark Invest, the market cap would be $4.65 trillion.
These maddening figures are explained by the fact that revenue generated by the sales of Tesla vehicles will increase but also by the emergence of a new cash cow activity that would be robotaxi, says Ark.
“Tesla’s prospective robotaxi business line is a key driver, contributing 60% of expected value and more than half of expected EBITDA [earnings before interest, taxes, depreciation, and amortization] in 2026,” Ark argues. “Across our simulation set, we expect electric vehicles to constitute 57% of the company’s revenue in 2026, albeit at substantially lower margins than robotaxi revenue.”
Tesla was the top company in Ark Investment Management’s portfolio as of December 31. The electric vehicle maker represented 7.9% of Cathie Wood’s firm portfolio.
On April 7, Elon Musk promised that Tesla was working on a new car and not just any car.
“There’s going to be a dedicated Robotaxi that’s going to look quite futuristic,” the tech tycoon said during the grand opening of a $1.1 billion Tesla factory in Texas.
For Musk, robotaxi means self-driving cars, capable of operating with no one inside and able to pick up passengers and deliver them to random locations. Basically, a robotic version of Uber (UBER) – Get Uber Technologies, Inc. Report or Lyft (LYFT) – Get Lyft, Inc. Class A Report.