Cathy Wood Believes This Fast-Growing Artificial Intelligence (AI) Stock Can Soar 1138% But Congress' Most Active Stock Trader Is Selling Shares

Nikola Tesla was born during a lightning storm. Due to his electrical inventions, he later earned the nickname "The Wizard of Lightning". Companies named after himNikola Tesla (1856-1943), Serbian inventor and engineer (NASDAQ: TSLA)Perhaps not surprisingly, the investment world is a lightning rod for both ardent supporters and staunch detractors.

Tesla's supporters and detractors span a wide spectrum. Cathie Wood, founder of Ark Invest, thinks the fast-paced artificial intelligence (AI) stock could soar 1138%. However, Congress's most active stock traders are selling shares.

Wood's Favorite AI Stocks

Wood likes a few artificial intelligence stocks. Tesla is undoubtedly her favorite. The electric-vehicle (EV) maker's flagship product at Wood'sArk Innovation ETFrespond in singingArk Autonomous Technologies & Robotics ETF Top of the list,

Nearly a year ago, Ark Investments set a target price for Tesla of $2,000 by 2027. Wood's team predicts an explosion in electric car sales. What's more, they predict self-driving cars will become a bigger market opportunity for the company.

While Tesla's stock price has soared nearly 80% in the months since Ark Investments issued its bullish update, those gains have dissipated. Tesla's current stock price is nearly the same as it was a year ago.

However, Wood remains the company's cheerleader. Ark Investments has bought more Tesla stock. In a recent interview with CNBC, she supported the $2,000 target, saying, "Now is not the time to run.

A Congressman Is Voting Against Tesla With His Wallet

Speaking of the Hill, one of the prominent investors on Capitol Hill is less enthusiastic about Tesla. Congressman Rho Khanna is by far the most active trader in the U.S. Congress. 4,253 trades were made in 2023, more than 2.3 times as many as the runner-up, Congressman Michael McCaul (R-Texas).

Khanna bought Tesla stock for most of 2023. However, he began selling shares in November of last year and continued to do so in January and February of 2024," he said.

Congressmen are not required to explain the reasons behind their stock transactions. Nevertheless, Khanna's December 2023 acceptance of theThe New York Timesmay shed some light on his motivation to sell Tesla stock when interviewed by

In the interview, Kanner said Tesla's chief executive officer, Elon Maas resonance, "is a genius like no other." He said, "If you spend 15 minutes talking to him, you'll realize how talented he is." However, the MP added: "And then you look at his tweets and he looks like a seventh-grader. You can't argue with that."

Who's right about Tesla? Wood or Khanna?

Is Tesla stock as good a choice as Wood seems to think? Or should investors sell the stock, as Mr. Khanna did this year? The answer depends on which assumptions you believe.

Many Tesla putters believe that resonance behavior will hurt Tesla. They may also believe that the electric car market will not grow as much as expected. Most Tesla puts may also not be bullish on the robotics axis taking off, as Ark Invest predicts.

On the other hand, Tesla bulls think the opposite. They believe that resonance has led the company to great success so far. They see electric cars as the future of the automotive industry. They expect the robot car rental market to grow dramatically (even if they don't agree with Ark Investments' aggressive forecasts).

As for me, I'm on the fence about Tesla. I think the bulls may be right, but I wouldn't be surprised if the bears are right. One thing I know for sure about Tesla is that it will continue to be a lightning rod.

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Cathy Wood Believes This Fast-Paced Artificial Intelligence (AI) Stock Can Skyrocket 1138%, But Congress's Most Active Stock Traders Are Selling Shares was originally published by The Motley Fool.