Cathie Wood Quadruples Down on Elon Musk as Tesla’s Revival Crawls—’Betting Bigger on Broken Genius’

Cathie Wood's ARK goes all-in on Musk—again—while Tesla's recovery limps along. Because nothing says 'conviction' like doubling down on volatility.

Wood's latest vote of confidence comes as Tesla struggles to regain its footing—proving Wall Street's favorite game remains 'hero worship roulette.'

Meanwhile, analysts whisper about sunk costs and cults of personality. But hey—when has logic ever stopped a true believer?

Musk forms political party while Tesla stumbles

Elon’s announcement over the weekend added another LAYER of chaos. He said he’s launching the “America Party” to take on both Republicans and Democrats in the upcoming House and Senate races. He also didn’t rule out backing a presidential candidate. This comes as Donald Trump, now serving again as US President, has regained his grip over the Republican Party.

Wall Street didn’t love that. The stock’s decline added to a rough year, Tesla is now down 27% in 2025 and has dropped in eight of the last nine sessions. Elon’s change toward politics hasn’t helped, especially in international markets where sales are slipping.

But Cathie isn’t pulling back. She’s betting that Tesla’s next growth wave will come from the robotaxi project. She previously told Bloomberg that the stock could hit $2,600 within five years, nearly nine times where it trades now, and that 90% of the company’s future value will come from that robotaxi rollout.

Her support isn’t limited to Tesla. Cathie also holds positions in Elon’s other companies, including xAI, SpaceX, and Neuralink. She’s stayed quiet on the political drama, saying, “We’ve been dealing with controversy around Elon Musk in one FORM or another since we first bought the stock. We do trust the board and the board’s instincts here and we stay out of politics.”

Dan Ives clashes with Musk over control and accountability

On Tuesday, the heat turned up when Dan Ives, Managing Director at Wedbush Securities and one of Tesla’s most bullish analysts, called for urgent changes. Ives has the highest Tesla price target on Wall Street — $500 — but he took to X to criticize Elon’s political detour and recommended that the board take control. He laid out three suggestions: give Elon a new pay package that gives him 25% voting power, greenlight a merger with xAI, and set clear limits on how much time he spends away from Tesla.

Elon didn’t respond quietly. “Shut up, Dan,” he wrote on X, brushing off all of Ives’ proposals. It didn’t matter that Ives’ first idea actually supports Elon’s long-held desire for more control of Tesla. The post drew even more attention to the mess unfolding inside the company.

That same day, Ives and his team released a detailed note titled, “The Tesla board MUST Act and Create Ground Rules For Musk; Soap Opera Must End.” It said Elon’s decision to enter politics marked a “tipping point in the Tesla story” and warned that the board needs to intervene before more value gets destroyed. Still, Wedbush held its buy rating and price target.

Meanwhile, the stock bounced slightly on Tuesday, climbing 1.3%. But the bigger issues remain. Elon’s involvement in US politics, combined with falling sales and slipping deliveries in Europe and China, has raised fresh concerns about the company’s direction.

Cathie, though, hasn’t budged. She’s still backing the board. She’s still holding Tesla. And she’s still betting on Elon’s long game, robotaxis, AI, and whatever else he decides is the next frontier.

Outside of Tesla, Cathie also called out Apple’s recent loss of its top AI executive to Meta. “If you think about the ultimate mobile device, it’s an autonomous vehicle and that should have been Apple’s to win,” she said.

She believes the Apple Car was the biggest AI project out there and now that another talent is gone, the company is “in a precarious position.” Meta’s CEO Mark Zuckerberg is going all-in on AI, trying to compete with OpenAI and Google. Cathie said Meta’s open-source strategy in generative AI is “quite admired,” but questioned if Zuckerberg is just repeating his metaverse misstep.

Even with all the chaos, Cathie isn’t walking away from Elon or his companies. She’s been through the noise before and doesn’t seem fazed by the current firestorm. As for Dan, he’s not changing his stance either. In an email to CNBC, he wrote, “Elon has his opinion and I get it, but we stand by what the right course of action is for the Board.”

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