Cathie Wood’s Bullish Forecast
With unwavering confidence, Cathie Wood of Ark Invest continues her buying spree of Tesla Inc shares, anticipating a skyrocket towards $2,000 per share in the coming years. Her optimism is anchored in the convergence of three pivotal technologies.
Recent Moves: Ark Invest’s backing of Tesla intensifies as the electric vehicle sector faces challenges with demand. Seizing the opportunity, the firm acquired 234,998 shares of Tesla across three exchange-traded funds on a recent dip caused by underwhelming delivery figures in the first quarter.
Tesla attributed the delivery slump to early production hurdles of the updated Model 3 and factory closures. Wood suggests the economic backdrop is contributing to the slowdown.
“Though official data may paint a rosy picture, a deeper dive into company reports reveals a stark contrast, signaling underlying economic vulnerabilities,” shared Wood on CNBC’s “Squawk Box”.
While Tesla currently resorts to price cuts to enhance short-term affordability for consumers, Wood envisions a more significant trend of EVs becoming more accessible over time.
Envisioning the upcoming five years as a significant investment timeframe, Wood foresees a 50% reduction in the average cost of electric vehicles. This transformation is set to be catalyzed by Tesla’s innovative manufacturing methods and artificial intelligence integration.
Presently, Tesla holds the second-largest position in the ARK Innovation ETF, trailing only behind Coinbase, constituting 9.16% of the portfolio. Noteworthy is that Ark previously divested Tesla shares when the stock ranged between $350 and $400 per share.
Despite enduring a 60% decline, Wood advises against fleeing from Tesla. She argues that the company’s potential dominance in autonomous driving merits being recognized over time. According to Wood, Tesla’s supremacy in the robotaxi arena is not an uncertainty but a question of timing.
Highlighting Tesla’s recent strides in Full Self-Driving technology, Wood applauded the refined precision and human-like driving experience. She emphasized the convergence of robotics, energy storage, and AI at Tesla as groundbreaking.
As she puts it, “This is the biggest AI project in the world; we are amidst a transitional phase until market participants appreciate the revolutionary nature of this technology amalgamation.”
Wood boldly predicts that electric vehicles will represent 75% to 85% of all new vehicle sales in five years, catapulting Tesla shares to $2,000.
TSLA Performance: While Tesla shares have dipped by approximately 32% year-to-date, the stock showed a slight increase of 0.68% to $167.77 on Wednesday afternoon, as indicated by Benzinga Pro.
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