A Once-in-a-Generation Opportunity: 1 Artificial Intelligence (AI) Stock to Buy Before it Soars 1,233%, According to Cathie Wood
Key PointsCathie Wood of Ark Invest has been a longtime supporter of Elon Musk and Tesla.
Cathie Wood, CEO of Ark Invest, has projected that Tesla's stock price could soar by 1,233% by 2031, reaching a value of $5,000 per share. This bullish outlook is based on Tesla's potential to commercialize autonomous transportation and humanoid robotics. In the bullish scenario, Ark estimates Tesla's revenue could grow from $95 billion in 2025 to $1.62 trillion, with an EBITDA margin of 65%.
These projections hinge on Tesla's successful deployment of autonomous driving technology (Robotaxi) and humanoid robotics (Optimus). By 2031, Ark predicts that Tesla could have 10 million Robotaxis generating $900 billion in annual revenue and 1.2 million Optimus robots generating $254 billion. Additionally, Ark forecasts $193 billion in energy storage sales, with 11.7 million vehicles sold annually.
To achieve these figures, Tesla would require significant investments in infrastructure, estimated at $225 billion in AI capital expenditure by 2031. While Ark's forecast is not aligned with traditional Wall Street targets, Wood maintains an optimistic stance on Tesla's prospects, despite the inherent risks and uncertainties.
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