Can Tesla Stock Really Hit $2,000? Cathie Wood Thinks So
Tesla stock epitomizes the convergence of three key technologies, Ark Invest's Cathie Wood says. Here's what you need to know.


Tesla (TSLA) stock is down more than 30% so far in 2024, but Ark Invest CEO Cathie Wood thinks "now is not the time to run for the hills." In fact, Ark has been buying the stock and thinks it could rise to $2,000 per share in the next five years, representing an increase of more than 1,000% from today's levels.
"Autos, in the future, will be electric," Wood said in a recent interview with CNBC. "We believe in five years, 75% to 85% of all sales will be electric."
And Tesla is not just an auto company, Wood told CNBC. It epitomizes three technologies – robotics, energy storage and artificial intelligence.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
When CNBC asked what Tesla would be worth in five years, Wood confidently said $2,000 per share.
The $2,000 per share figure is not new, either. In April 2023, Ark Invest published its valuation model for Tesla with the same price target and the expectation of reaching it by 2027. It also revealed a "bull case" target of $2,500 per share, which had a 25% probability, and a "bear case" target of $1,400 per share, also with a 25% probability.
Robotaxis are key to Tesla stock's growth
The key driver of Ark's investment thesis is Tesla's prospective robotaxi business, which it thinks could represent 44% of the $1.02 trillion in revenue, 64% of the $354 billion in earnings before interest, taxes, depreciation and amortization (EBITDA) and 67% of the $6.1 trillion enterprise value it expects Tesla to reach in 2027.
Ark's price targets rely heavily on the anticipated launch of the robotaxi business, "with late 2024 as the weighted average of all cases," it said.
"With a robotaxi platform, Tesla should be able to generate earnings from both the vehicle sale and a recurring ride-hail revenue stream, which ARK believes could generate software-like margins," Ark said in its valuation model. "As Elon Musk has phrased it, autonomous ride-hail ‘probably will be the biggest asset value increase in history.'"
If the robotaxi business does not launch in the near term, Ark may have to revise its target date for reaching the $2,000 per share price target.
As a point of comparison, the average target price of the 47 analysts covering Tesla stock that are tracked by S&P Global Market Intelligence is $196.64.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
USPS Is Raising Prices for Holiday Shipping: Dates and Increases You Need to Know
What the USPS's $16 price hike means for your wallet and your small business.
-
July CPI Report Ignites a Risk-On Rally: Stock Market Today
Market participants price out worst-case scenarios for tariffs and inflation and will now turn their attention to employment and growth.
-
July CPI Report Ignites a Risk-On Rally: Stock Market Today
Market participants price out worst-case scenarios for tariffs and inflation and will now turn their attention to employment and growth.
-
July CPI Report Boosts Rate-Cut Odds: What the Experts Say
The July CPI report shows that tariffs are having a slight impact on inflation, though not enough to keep the Fed from cutting interest rates.
-
DST Exit Strategies: An Expert Guide to What Happens When the Trust Sells
Understanding the endgame: How Delaware statutory trust dispositions work, what investors can expect and why the exit is probably more important than the entrance.
-
Think Selling Your Home 'As Is' Means You'll Have No Worries? Think Again
There are significant risks and legal obligations involved in selling a home 'as is' and by yourself, without a real estate agent.
-
Stocks Slip Ahead of July CPI Report: Stock Market Today
The latest inflation updates roll in this week and Wall Street is watching to see how much of an impact tariffs are having on cost pressures.
-
What the OBBB Means for Social Security Taxes and Your Retirement: A Wealth Adviser's Guide
For Americans in lower- and middle-income tax brackets, the enhanced deduction for older people reduces taxable income, shielding most of their Social Security benefits from being taxed.
-
Financial Planner vs Investment Manager: Who's the Better Value for You?
When markets are shaky, who do you trust with your money? A recent study provides useful insights into the value that different financial professionals offer.
-
I'm a Financial Adviser: This Is How You Could Be Leaving Six Figures in Social Security on the Table
Claiming Social Security is about more than filing paperwork and expecting a check. When you do it and how you do it have huge financial implications that last the rest of your life.