Legendary investor Cathie Wood, CEO of ARK Invest, has come to the defense of Tesla's CEO, Elon Musk, amidst the company's recent struggles on Wall Street. Wood believes that Musk's ability to thrive in the face of adversity is a key reason why Tesla will continue to endure.

Despite Tesla's worst performance on Wall Street this year, Wood remains a staunch supporter of the electric vehicle (EV) maker, with Tesla still being ARK's largest holding. She attributes her unwavering support to Musk's renowned troubleshooting skills and dismisses concerns that his commitments are stretching him thin.

One particular concern is Musk's purchase of social media platform X, previously known as Twitter, for a staggering $44 billion in October last year. Some Tesla investors worry that Musk's attention may be disproportionately focused on X. Wood acknowledges the challenges faced by X but assures that they do not cause significant concern.

"Elon is a troubleshooter," Wood stated in a recent interview with CNBC's ETF Edge. "The troubles at X are not over yet... These difficult times, though, spur Elon's creativity. He is a troubleshooter and a brilliant technologist."

Wood further believes that each instance of turmoil propels Musk to new breakthroughs. She stated, "We think that each time [Musk] does face turmoil like this, the intensity of his brain cells takes him to new answers."

Wood's theory about Musk's resilience may soon be tested. Shortly after reiterating her support for Tesla, Musk hosted a less-than-positive Q3 earnings call, where he cautioned about the state of the economy and the financial burden on consumers.

Tesla's stock price experienced a significant drop, closing the week at $211.99, after posting its lowest quarterly earnings per share in two years. This 10% decline alarmed Wall Street, causing the company's market capitalization to shrink from $808 billion to $670 billion in just over two trading days. Musk's personal fortune also took a $30 billion hit.

However, Wood remains steadfast in her belief that Musk will bounce back, citing previous instances where his determination has triumphed. She expressed confidence in Tesla's ability to scale its electric vehicles and emphasized Musk's focus on the development of autonomous technology, particularly the completion of the latest software upgrade.

Wood also touched upon Tesla's potential for capitalizing on the autonomous taxi market, mentioning the hiring of "ride-hail experts" across the country. She deemed this move a "game changer" if Tesla can successfully develop full self-driving software and bring autonomous vehicles to market. Nonetheless, Wood, like many other investors, anxiously awaits further details on the launch.

As Tesla faces challenges on multiple fronts, it remains to be seen whether Musk's troubleshooting abilities will once again lead the company to success.