Tesla's electric vehicle sales are shrinking, but Cathie Wood and Ark Invest say there's a different reason to buy the stock.
Cathie Wood is the founder and chief investment officer of Ark Invest, which operates a family of exchange-traded and private funds. Each fund invests in innovative technologies like electric vehicles (EVs), robotics, space exploration, artificial intelligence (AI), and more.
Wood recently described Tesla as the biggest AI opportunity in the world because of the introduction of its latest version of self-driving (FSD) technology, which could transform the company's economics. For the same reason, Ark also published a report in June that included a price target of $2,600 for Tesla stock by 2029.
That implies a 990% upside from where the stock trades today, which might be ambitious considering Tesla's EV sales are currently shrinking. In fact, even the company's chief executive officer, Elon Musk, thinks Ark's target will be tough to reach.
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