Well-known analyst Cathie Wood told Bloomberg TV yesterday that she remains very bullish on Tesla (TSLA) stock and believes that the shares will surge nearly ten times in five years. More specifically, she predicts that TSLA will reach $2,600 at the end of the latter period. Additionally, Wood confirmed that her firm has bought more TSLA stock this week.
Wood is primarily upbeat on the stock because of the company’s robotaxi initiatives. Indeed, the analyst predicted that robotaxis will “account for 90% of the stock’s value in five years.” Contending that robotaxis utilize a software-as-a-service business model, Wood predicted that they would have 80%+ margins for Tesla, versus the 15%-25% margins provided by its EVs.
She also sounded excited about Tesla’s humanoid robots, saying that they are “moving into Tesla’s ecosystem much faster than even we expected.” Among the other positive catalysts for TSLA stock are its ongoing Model Y refresh and the new, more affordable EV that it’s expected to launch in the U.S. Wood believe that there is “pent-up demand” for the latter vehicle in America.
As far as the company’s negative catalysts, Wood expects the political issues that have been hindering TSLA to eventually fade and stated that the government “is cracking down” on the vandalism of the company’s EVs.
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This article is originally published at Insider Monkey.
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