Cathie Wood Bets Big on Tesla's AI Future

Tesla is known for its electric vehicles, but some investors believe the company is also a leader in artificial intelligence (AI). Cathie Wood, CEO of Ark Invest, is one of those investors. She has been bullish on Tesla for a while, and in May she said that the company is the "biggest AI play out there."

Wood believes that Tesla's AI technology will be essential for the development of autonomous vehicles. She estimates that the autonomous Robotaxi market could be worth up to $10 trillion by 2030, and she believes that Tesla is well-positioned to capture a significant share of that market.

To support her thesis, Wood points to Tesla's recent announcement that it plans to increase its supercomputer's computing capacity by 20 times by 2024. This will allow Tesla to train its AI models on a much larger dataset, which will make its autonomous vehicles more capable.

Wood is not the only investor who is bullish on Tesla's AI future. KGI Securities Analyst Jennifer Liang also believes that Tesla is an AI company. In a recent note to investors, Liang said that Tesla's AI technology is "light years ahead" of the competition.

Tesla's AI technology is still in its early stages, but Wood and other investors believe that it has the potential to revolutionize the transportation industry. If Tesla is able to successfully develop autonomous vehicles, it could become one of the most valuable companies in the world.

Tesla recently projected that by 2024 its compute capacity will hit 100 exaflops, which is 20 times higher than the 4.5 exaflops it mentioned in September.

Ark Invest believes that Tesla may become one of the largest AI training companies in the world.

"Autonomous vehicles are robots, they will be electric and they will be powered by AI," Wood said in May. "Each one of these is growing exponentially, and then you have them feeding each other. This could be explosive growth."

Ark Invest's confidence in Tesla's AI potential is reflected in its substantial stock ownership. The Ark Innovation ETF alone holds over 3.5 million Tesla shares valued at more than $860 million. Wood's conviction stems from her belief that autonomous vehicles, powered by AI, will revolutionize the transportation industry and drive explosive growth.

As the debate continues between Tesla's EV leadership and its potential as an AI powerhouse, Cathie Wood remains steadfast in her conviction that Tesla's future lies in AI. With Tesla's relentless pursuit of technological advancements and its ambitious plans for AI-driven growth, the company's trajectory is poised to reshape industries and capture the imagination of investors worldwide.

Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebok, Linkedin and Youtube.