While Tesla (NASDAQ:TSLA) stock continues to grab headlines for being the single-biggest loser so far in 2024, there’s one major investor who thinks the electric vehicle (EV) maker is due for a recovery: Cathy Wood. The Ark Invest manager believes that Tesla’s more than 30% drawdown is just a road bump before CEO Elon Musk’s brainchild soars to new highs.
How high you might ask?
Wood has a $2,000 price target on TSLA stock. For context, the stock currently trades for $171 per share.
Wood recently discussed her optimism for Tesla, arguing that the company is still positioned strongly for the all-electric future. “Now is not the time to run for the hills,” Wood said in an interview with CNBC.
Ark Invest recently bought up millions of dollars worth of Tesla ahead of the company’s first-quarter earnings call last week. Unfortunately, the company’s financial results were nothing short of disappointing, further digging Tesla into the red.
Still, Wood believes that Tesla’s future is bright. The fund manager thinks that Tesla will hit its stride when it eventually rolls out its robotaxi business, which she estimates could contribute to $10 trillion in revenue by 2030.
Wood is a long-time Tesla fan, having once maintained a price target of $5,000 per share for TSLA stock.
TSLA Stock Suffers Brutal Losses Following Earnings Bust
Despite Wood’s faith, much of Wall Street has abandoned Tesla. Indeed, the EV maker has already shed more than $240 billion in value in 2024, with some analysts even claiming that the “Magnificent Seven” is now the “Fab Four,” cutting Tesla, Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG, NASDAQ:GOOGL) from the roster.
Not for nothing, Tesla has largely failed to meet expectations this year. In its recently posted Q1 financial results, the company announced a year-over-year (YOY) decline in global vehicle deliveries — for the first time since 2020.
The company has seen a sharp pullback in EV demand, attributable to a number of possible headwinds, including increased competition in China.
“[It] was a messy first quarter,” noted Guggenheim Securities analyst Ronald Jewsikow. “The demand is slowing, China competition is strong, and then Europe hasn’t grown for five quarters now for Tesla. Structurally, there’s emerging risks in all three regions that, even as we move beyond a very messy first quarter earnings result, there’s reasons for concern.”
Whether this once-upon-a-time EV darling reclaims its seat among new tech giants, remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
