Ark Invest CEO and longtime Tesla (TSLA) bull Cathie Wood asserted that the company has evolved beyond cars, pivoting to robotaxis. In a recent CNBC Squawk Box interview, she noted that despite pressure on global electric vehicle (EV) sales, investors are shifting focus to Tesla’s emerging robotaxi business.
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Wood described Tesla’s current phase as a transition from low-margin, traditional automotive business to a high-margin software-as-a-service (SaaS) model, driven by autonomous ride-hailing. She highlighted that Tesla is moving from achieving modest gross margins of approximately 15% on automotive hardware to a higher-margin business that promises 70% to 80% margins, fueled by recurring revenue from autonomous ride-hailing services.
Analysts Are Incorporating Robotaxi Now
Wood contends that analysts are progressively integrating these robotaxi dynamics into their valuation frameworks now, making Tesla’s true potential clearer. She noted that recent upgrades, even from auto-focused analysts consulting tech peers, signal growing consensus that Tesla is a tech innovator, not just a carmaker.
CNBC also challenged Wood on the specifics of Tesla’s autonomous robotaxis and humanoid robots, questioning whether these ambitious initiatives might require years to achieve meaningful scale. Wood countered by pointing to Tesla’s rapid expansion in operational footprint, which she believes outpaces general expectations.
She highlighted the competitive dynamic in Texas, where Tesla and Alphabet’s (GOOGL) Waymo are directly vying for territory, a development she views positively as it accelerates innovation. She forecasts faster robotaxi rollout than analysts expect, especially if federal rules replace state fragmentation.
Is Tesla a Good Stock to Buy Now?
Analysts remain sidelined on Tesla stock currently. On TipRanks, TSLA stock has a Hold consensus rating based on 12 Buys, 11 Holds, and seven Sell ratings. The average Tesla price target of $397.47 implies 9.2% downside potential from current levels. Over the past year, TSLA shares have gained 3.2%.
