Cathie Wood’s Ark predicts that a $1 trillion industry for delivery robots is about to emerge, and Tesla is poised to profit from it.

The director of investment analysis at ARK, Tasha Keeney, wrote that autonomous ride-hail technology could turn cars u2014 stranded assets used less than 5% of the day u2014 into assets generating significant recurring cash flows: each of Tesla’s autonomous ride-hail vehicles could generate about $20,000 annually. With a 2,500% growth from current market levels, Keeney continued, this would enable Tesla’s share price to reach Ark’s objective of $4,600 per share in 2026. With a sizeable holding in Elon Musk’s business, Ark’s Innovation ETF had a record-breaking 29% return in January, boosted by a 40% increase in Tesla stock. However, the ETF’s investment in Tesla and other higher-risk innovation firms caused it to lose 67% of its value in 2022, on top of a 23% decline in 2021.Source: Investing GWe are working on more goods. Obviously, we won’t reveal them, but they’re quite exciting nonetheless. And I believe that when we announce them, it will astound everyone On Tesla’s most recent investor call, Musk mentioned the company’s fourth-quarter 2022 profits.Wood’s fund said that this consisted of its data repository, training, and inference tools, all of which are positioned Tesla to construct new autonomous machines that navigate the physical environment, maybe drones or last-mile delivery robots, according to the fund.According to Ark’s Big Ideas 2023 report, if automobile sales decline as expected, how quickly traditional manufacturers adapt to the technology will determine whether or not the $1 trillion delivery robot industry projection comes true.Share your thoughts with us in the comments.