Cathie Wood supports Tesla

Cathie Wood supports Tesla

Cathie Wood’s Tesla

In the face of a significant stock sell-off, Cathie Wood, the CEO of Ark Invest, is doubling down on her optimistic outlook for Tesla Inc

What Happened: Wood reaffirmed her bullish stance on Tesla, despite the recent stock slump, attributing it to a cyclical low. She anticipates a turnaround in the next two years, driven by the introduction of autonomous taxi networks and platforms.

Despite a 25% drop in Tesla’s stock over the last five weeks and a disappointing earnings report, Wood is buying the dip. She believes that the electric vehicle (EV) market will continue to grow and that robotaxis will revolutionize the industry.

Wood, a long-time Tesla supporter, is confident in the company’s potential for growth, driven by the increasing adoption of EVs and Tesla’s AI capabilities.

The prominent investor reaffirmed her projection that her favorite electric vehicle company could reach $2,000 within five years, noting plans to revise the target. This valuation would imply a market capitalization exceeding $5 trillion for Tesla. Additionally, Wood expressed confidence in the potential growth of her other significant holdings.

She said on CNBC’s Last Call, “We have been buying Tesla. There is so much negative psychology in the stock right now. We think electric vehicles are going to continue to gain share and really take over the market in the next five years. And beyond that, robotaxis are going to change the landscape entirely.”

Why It Matters: Wood’s faith in Tesla is reflected in Ark Invest’s recent actions. The firm has been consistently increasing its stake in Tesla, even amidst the stock’s decline. In January, the firm purchased $3.3 million worth of Tesla shares, reinforcing its confidence in the electric vehicle giant. This move came at a time when Tesla was facing a challenging market scenario.

Ark Invest’s faith in Tesla was further evidenced in February when the firm purchased over $11 million worth of Tesla shares, despite market fluctuations. These investments reflect Wood’s unwavering belief in Tesla’s growth trajectory.

Meanwhile, Ark Invest’s Director of Research Autonomous Technology & Robotics, Sam Korus, recently suggested that the launch of Tesla’s sub-$30,000 electric vehicle could expand the company‘s addressable market tenfold.

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