Here’s Why Cathie Wood’s Latest Tesla (TSLA) Prediction May Fall Short

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Wood has a $2,600 price target for Tesla Inc (NASDAQ:TSLA) for 2029. In a recent YouTube interview with “The Rundown,” Wood said most of Tesla’s upside potential comes from robotaxis. She mentioned Elon Musk’s recent claim that Tesla Inc (NASDAQ:TSLA)’s robo-taxis will be able to operate in 25% to 50% of major US cities by the end of the year, scaling faster than Waymo.Most of Tesla Inc (NASDAQ:TSLA)’s bull cases are linked to the company’s future plans for autonomous driving and robotics. But its EV business is facing tough competition and demand headwinds. In 2025, Tesla Inc (NASDAQ:TSLA)’s EV deliveries fell for the second straight year, and the company has lost its crown as the world’s top EV maker by annual deliveries to China’s BYD. The stock is down 11% so far this year.Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2025 investor letter:“In 2025, we exited 30.5% of our position in Tesla, Inc. (NASDAQ:TSLA). We are extremely confident in the company’s prospects and ability to become a significantly more valuable business. The Fund completed its purchase of Tesla shares in 2016 with an ending portfolio weight of 9.6% of total investments. Its average cost of all purchases in the Fund was only $14.22 per share. Due to significant appreciation in the stock, the position increased to 26.7% of the portfolio’s total investments at the end of 2025. Despite offsetting some of the volatility caused by the position’s weight with more stable and uncorrelated investments, Tesla’s stock movements caused increased variability in the entire portfolio. We entered into agreements with a large investment bank to dispose of a portion of the holdings through a redemption in-kind because, we believe, it would have minimal impact on the share price and low transaction costs. Tesla remains a top holding of the Fund. The disposition was a portfolio construction decision and not reflective of reduced confidence in the business.”While we acknowledge the risk and potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA and that has 10,000% upside potential, check out our report about this cheapest AI stock.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersMU Micron Technology, Inc. 461.73 +0.04 (+0.01%)BTC-USD Bitcoin USD 71,124.20 -3,662.43 (-4.90%)FIG Figma, Inc. 25.26 -2.19 (-7.98%)CVNA Carvana Co. 291.17 -23.57 (-7.49%)RCAT Red Cat Holdings, Inc. 17.00 +0.03 (+0.18%)PortfolioSign in to access your portfolioSign inTop gainersRGC Regencell Bioscience Holdings Limited 26.38 +3.41 (+14.85%)VG Venture Global, Inc. 14.85 +1.88 (+14.50%)ANDG Andersen Group Inc. 28.27 +3.38 (+13.58%)HTFL Heartflow, Inc. 25.47 +2.95 (+13.10%)KC Kingsoft Cloud Holdings Limited 14.78 +1.66 (+12.65%)Top losersSAIL SailPoint, Inc. 12.47 -2.24 (-15.23%)BGSI Boyd Group Services Inc. 140.27 -21.35 (-13.21%)SA Seabridge Gold Inc. 27.01 -3.84 (-12.45%)NG NovaGold Resources Inc. 8.55 -1.19 (-12.22%)RKLB Rocket Lab Corporation 69.48 -9.11 (-11.59%)Most activeNVDA NVIDIA Corporation 180.40 -1.53 (-0.84%)PLUG Plug Power Inc. 2.3200 -0.0100 (-0.43%)ONDS Ondas Inc. 10.83 -0.45 (-3.99%)SOFI SoFi Technologies, Inc. 17.18 -0.19 (-1.09%)AAL American Airlines Group Inc. 10.80 -0.06 (-0.55%)Top economic eventsEarnings eventsMy earnings eventsEarnings events