Ark Invest CEO Cathie Wood is a prominent Wall Street investor. Wood invests in numerous developing technologies, including AI and genomics.
Wood's most optimistic position may be on Tesla (NASDAQ: TSLA). Wood has long supported Tesla's quirky CEO Elon Musk, who shares his vision for the firm beyond EV manufacturing.
Wood recently called Tesla the world's greatest AI play due to its autonomous driving and robotics efforts. According to Wood's estimate, Tesla stock may rise 777% in three to four years. Let's examine Tesla's operations to see if Wood's price goal is achievable.
Tesla is one of the best-performing stocks in recent history, but the chart above shows that the path has been nonlinear. Tesla has institutional support from Wood and Ron Baron, but regular investors also enjoy it. Musk's social media presence and meme obsession are to blame.
Despite controversy, Musk and his crew have always delivered. Thus, Tesla has become one of the world's largest companies by market cap as confidence has grown.
Tesla stock has seen increased purchasing activity and is overvalued due to its rapid rise. Tesla divided its stock in 2020 and 2022 to offset this.
Stock splits do not impact a company's value, but seasoned investors know that additional investors buy in following them. Psychologically, the stock appears cheaper due to its reduced share price.
Tesla's split-adjusted stock price is $228. With so many AI triggers coming, is Wood's $2,000 per share projection realistic?