Cathie Wood, a well-known Tesla (TSLA) bull and founder of Ark Investment, is still optimistic about the electric vehicle maker despite its recent struggles, according to an interview with Yahoo Finance. Indeed, Wood believes that there is “pent-up demand” for Tesla vehicles and expects the company to release robotaxis across the U.S., which could be a major growth catalyst.
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It is no secret that Tesla’s stock has had a rough start to the year after falling almost 29% on a year-to-date basis. The company’s sales have also been impacted, with a 33% drop in Chinese sales in January, along with similar declines in Europe. Additionally, prices of used Tesla vehicles are declining, and the company is facing increased competition from other electric vehicle makers.
Despite these challenges, Wood remains confident in Tesla’s long-term potential and predicts that the stock will reach $2,600 per share by 2029. However, not all analysts are as optimistic. In fact, JPMorgan’s Ryan Brinkman recently rated the stock as Underperform due to concerns about demand, execution, and competition in the mass-market segments. Interestingly, though, Four-star Morgan Stanley analyst Adam Jonas recently backed Tesla and indicated the stock could have as much as 50% upside. This is because of its potential in the AI and robotics markets, which can offset the company’s struggles in the EV market.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $351.38 per share implies 22.25% upside potential.