Is Cathie Wood Still Hopeful About Tesla (TSLA)?

Cathie Wood’s 11 Biggest AI and Data Center Stock Picks. Tesla Inc. (NASDAQ:TSLA) ranks #1 (see Cathie Wood’s 5 Biggest AI and Data Center Stock Picks).

Wood has a $2,600 price target for Tesla Inc (NASDAQ:TSLA) for 2029. In a YouTube interview earlier this year, Wood said most of Tesla’s upside potential comes from robotaxis.

Tesla Inc. (NASDAQ:TSLA) is no longer just an EV company. It is becoming an AI and robotics company, backed by heavy investment in compute, chips, and automation. The company has raised its capital spending plan to $25 billion from $20 billion to fund this pivot. Tesla Inc. (NASDAQ:TSLA) is targeting mass production of its Optimus humanoid robot with a goal of reaching 1 million units annually by the late 2020s and up to 10 million units per year in the early 2030s. Why does this matter? The global robotics market is estimated to reach about $416 billion by 2035, growing at an annual rate of roughly 14%. This could be a key growth driver for Tesla in the future.

Tesla Inc. (NASDAQ:TSLA) also has a key data advantage thanks to its global fleet of millions of vehicles, which continuously collect real-world driving footage. That data is fed back into its neural networks, creating a feedback loop that improves its AI learning systems.

Unlike competitors that rely on LiDAR and high-definition maps, Tesla Inc. (NASDAQ:TSLA) uses a vision-based approach built around cameras and neural networks. Tesla’s camera-based system relies on AI to interpret the world from video, turning raw driving data into real-time decisions and making autonomy a software problem rather than a hardware one.

Despite rising competition in the EV space, Tesla Inc. (NASDAQ:TSLA) can offset the loss of market share with innovation and strikes in the AI domain.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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