In her recent analysis, Cathie Wood, CEO of ARK Invest, shared her positive outlook on Tesla's future. She highlighted Tesla's robotaxi network as a key factor, calling it "the largest AI project on Earth." Unlike some companies focusing on immediate profits, Tesla's continuous investment in innovation sets it apart, according to Wood.

Wood noted Tesla CEO Elon Musk's mention of a potential partnership with a US OEM during an earnings call, which could boost the robotaxi network. She predicted Tesla's gross margin could increase significantly, reaching 25-35% as electric vehicles gain popularity. Wood even suggested that Tesla's robotaxi margins could reach an impressive 70-85%, similar to Software as a Service models.

Contrary to reports of Tesla scaling back investments, Wood and her team at ARK Invest believe Tesla is doubling down on both affordable cars and the CyberCab network. She cautioned against the prevailing trend among investors to prioritize short-term gains, urging a focus on disruptive innovation for potential long-term returns.

Wood emphasized the importance of not overlooking pure plays in disruptive innovation, warning against the overemphasis on mega-cap innovation companies, dubbed the "Mag 6" stocks. Despite Tesla's inclusion in broad-based benchmarks, Wood sees a shift towards the "Mag 6" stocks, possibly influenced by Elon Musk's ambitious vision and investment approach.

In conclusion, Wood's analysis paints a bright picture for Tesla, highlighting its commitment to innovation through projects like the robotaxi network and AI. She urges investors to consider the long-term potential of disruptive innovation, rather than solely focusing on short-term gains.