Cathie Wood is trimming her Tesla (TSLA) stake, yet her expectations have rarely been higher. She still sees the company ultimately earning 70%-80% gross margins on the back of robotaxis and software. That confidence comes just as pressure builds on the core EV story, with Tesla’s sales slide in key European markets deepening, price cuts chipping away at profitability, and fresh competition from Chinese brands tightening the screws.
The picture is not one‑sided, though. Tesla just climbed the ranks in a major annual automaker survey, which reinforces its brand strength and perceived technological edge. At the same time, Morgan Stanley recently shifted to a more cautious stance on the stock. Wood, for her part, is leaning hard into the bullish narrative, and in a recent interview, she doubled down on a robotaxi‑driven future, arguing that deflationary tech forces and autonomous networks can support those outsized margins over time.
