Elon Musk Thinks Cathie Wood-Led Ark Is 'Probably Not Wrong' With Its $5 Trillion Valuation For Tesla, Cites Potential Of Optimus Humanoid Robot

What Happened: During Tesla’s second-quarter earnings call, Musk said, “ARK Invest thinks, on the order of $5 trillion, I think they are probably not wrong. And long-term Optimus, I think, it achieves a valuation several times that number.”

This alignment between ARK’s analysis and Musk’s vision highlights Tesla’s commitment to diversifying beyond electric vehicles into AI and robotics.

As Tesla continues to develop its humanoid robot, Optimus, with plans for limited production starting next year, investors and industry watchers will closely monitor whether this bold vision can translate into reality.

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In February, Wood reaffirmed her projection that her favorite electric vehicle company could reach $2,000 within five years, noting plans to revise the target. This valuation would imply a market capitalization exceeding $5 trillion for Tesla. 

During the second-quarter results, Tesla reported a revenue of $25.5 billion, surpassing Street consensus estimates. However, the company’s EPS, operating margins, and free cash flow fell short of expectations, leading to a decline in Tesla’s stock.

Musk discussed various operational aspects, including a delay in the robotaxi project and the potential postponement of the Mexican Gigafactory due to tariff concerns.

Gene Munster, a tech analyst at Deepwater Asset Management, highlighted Musk’s strong conviction regarding vehicle autonomy. Musk stated that those who do not believe in Tesla’s ability to solve vehicle autonomy should not hold its stock.

Price Action: Tesla’s stock closed at $246.38 on Tuesday, down 2.04% for the day. In after-hours trading, the stock fell further 7.77%. Year to date, the stock has declined 0.82%, according to data from Benzinga Pro.

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