Cathie Wood, the CEO of Ark Invest, remains confident in her investment strategy focused on disruptive innovation despite the recent weak performance of her funds. Her bold investment strategy had led to incredible outperformance during the early days of the pandemic, but all those gains have since disappeared.

Nonetheless, she believes in the future of companies like Tesla, which is the top holding of her Ark Innovation ETF. Wood and Ark Invest recently published a valuation model that envisions Tesla’s stock price reaching $2,000 per share by 2027, which implies 1,030% upside from its current price.

That bullish valuation model revolves around the idea of robotaxis, a concept that Tesla CEO Elon Musk recently discussed in an interview. According to Musk, Tesla’s full self-driving (FSD) technology would enable the company to sell cars for software margins. In addition, Musk praised Ark Invest for having the “best analysis” he’s seen on the topic of robotaxis.

Investors who are not familiar with robotaxis need to understand that this is a revolutionary concept that could disrupt the entire automotive industry. The idea is that Tesla’s FSD technology would allow car owners to put their vehicles into a ride-hailing fleet when they are not using them, which could generate significant income for the car owners and Tesla.

However, there are many challenges and regulatory hurdles that need to be overcome before robotaxis become a reality. Furthermore, there are other companies and technologies that could compete with Tesla in this space.

Investors who are interested in investing in disruptive innovation should consider adding Ark Invest’s funds to their portfolio. However, they should be aware of the high volatility and risks associated with this type of investment.

In conclusion, Cathie Wood and Elon Musk are confident in the future of robotaxis, and they believe that Tesla could be a dominant player in this industry. Investors who are interested in this trend should do their due diligence and consider adding Ark Invest’s funds to their portfolio.

By Grady Owen

After training a pack of Raptors on Isla Nublar, Owen Grady changed his name and decided to take a job as an entertainment writer. Now armed with a computer and the internet, Grady Owen is prepared to deliver the best coverage in movies, TV, and music for you.