Proactive Investors - Tesla Inc (NASDAQ:TSLA)'s focus on rolling out an autonomous taxi platform could see the electric vehicle maker’s stock price increase tenfold according to famed investor Cathie Wood.
Wood, the founder of investment management firm ARK Invest, sees autonomous taxis, also known as Robotaxis, as a $8 trillion to $10 trillion global revenue opportunity.
“Autonomous taxi platforms are the biggest AI project evolving today,” she told Bloomberg during a recent podcast interview.
She added that Ark has primarily based its Tesla valuation on its autonomous driving potential.
“If we are right, the stock has miles to go,” she said.
Tesla has delayed its planned Robotaxi unveiling by about two months until October to provide additional time to build prototypes, it was reported last week.
Wood said Tesla CEO Elon Musk “wants to show us something more awe-inspiring than we might have seen on August 8, and he believes it’s possible by October.”
She expects Tesla to lead the US market in autonomous taxi networks, which she sees as a “winner-takes-most” opportunity.
“That is what we think people are missing: the size of the opportunity, how quickly it’s going to scale, and how profitable it’s going to be,” she said.
Tesla is a significant holding in the Ark Innovation ETF, surpassing 15% last week.
The stock traded hands at about $252 on Wednesday, marking about a 1.5% gain in the year to date.