Here’s Why Cathie Wood’s Latest Tesla (TSLA) Prediction May Fall Short

Group 1 - Cathie Wood remains bullish on Tesla Inc (NASDAQ:TSLA) for the long term, with a price target of $2,600 for 2029, emphasizing the potential of robotaxis as a key growth driver [1] - Tesla's EV business is currently facing tough competition and demand challenges, having lost its position as the world's top EV maker to BYD in 2025, with deliveries declining for the second consecutive year [2] - Baron Partners Fund reduced its position in Tesla by 30.5% in 2025, citing confidence in the company's long-term prospects while managing portfolio volatility [4] Group 2 - Tesla's stock has decreased by 11% year-to-date, reflecting market challenges despite its strong historical performance [2] - The Fund's average purchase cost for Tesla shares was $14.22, and the position grew to 26.7% of the portfolio by the end of 2025 due to significant stock appreciation [4] - The decision to reduce holdings was a strategic portfolio construction move rather than a sign of diminished confidence in Tesla's business [4]