Cathie Wood of Ark Investment Management LLC expressed her belief that $Tesla (TSLA.US)$ could see a significant surge in its stock price as it moves into the autonomous taxi business. Wood suggests that this shift could present a global revenue opportunity of $8 trillion to $10 trillion.

What Happened: During the Tiger Money podcast, Wood stated that Tesla could potentially capture up to 50% of the autonomous taxi market. Investors are beginning to value Tesla beyond its electric vehicle production, factoring in its potential in the autonomous taxi sector, reported Bloomberg.

"Autonomous taxi platforms are the biggest AI project evolving today," Wood said. She believes that Tesla's stock has a long way to go, primarily based on its autonomous driving potential.

Despite a 43% slump in Tesla's share prices this year through April 22, Wood remains bullish. A rebound in the last two months has erased most of the losses. Wood has consistently backed Tesla, making it a top holding in her Ark Innovation ETF (NYSE:ARKF).

Wood also highlighted that the autonomous taxi network will be a "winner-takes-most" opportunity. The provider offering the safest and quickest service will secure the majority of the business. She expects Tesla to lead the US market in this regard.

Tesla's weighting in the $6.5 billion ARKF surpassed 15% last week. Wood revealed that the asset manager has taken some profits on Tesla but allowed it to surge beyond the normal ceiling, anticipating more information on Tesla's robotaxi project.

Despite a delay in Tesla's planned robotaxi unveiling, Wood remains unfazed. "We're probably getting closer to this robotaxi opportunity, not further away," she said.

Why It Matters: Wood's bullish stance on Tesla has been consistent, even during significant stock sell-offs. In February, she reaffirmed her optimistic outlook for Tesla, attributing the stock slump to a cyclical low and anticipating a turnaround driven by the introduction of autonomous taxi networks and platforms.

In April, Wood stated that Tesla is the 'biggest AI project' in the world and expects the tech stock to move towards $2,000 per share in the coming years as three key technologies come together.

Despite recent skepticism due to weaker-than-expected orders, Wood's optimism about Tesla and its future in the autonomous vehicle sector underscores her belief in the potential of disruptive technologies.

In July, Ark Invest began selling Tesla shares just after the company reported second-quarter deliveries that topped muted forecasts. The firm continued selling a smattering of its Tesla holdings over the next two sessions before pausing, possibly factoring in a trend reversal.

Price Action: On Tuesday, Tesla shares ended the regular session 1.55% higher at $256.56 and declined 0.2% in the after-hours trading, according to data from Benzinga Pro.

This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal