Ark Invest’s Cathie Wood, a well-known name in the financial industry, has been increasing her stakes in Tesla Inc as she envisions the tech giant’s stock soaring to $2,000 per share. Wood’s optimism stems from the alignment of three critical technologies, propelling Tesla into a promising future.
Recent Moves: Despite headwinds faced by the broader electric vehicle sector in terms of demand, Ark Invest has continued to accumulate Tesla shares. The firm’s latest purchase of 234,998 Tesla shares across multiple exchange-traded funds underscores a bullish sentiment towards the company, especially following a period of weak delivery numbers.
Tesla attributed the delivery decline to early production challenges and factory shutdowns, revealing a temporary setback in operations. Wood suggested that broader economic pressures might also be contributing to the sluggish demand environment, prompting Tesla to reduce prices temporarily to support consumer demand.
Wood highlighted the trajectory towards increased EV affordability in the near future, with Tesla at the forefront of technical advancements. Anticipating a substantial reduction in electric vehicle costs over the next five years, Wood lauded Tesla’s innovative manufacturing techniques and AI integration as pivotal factors in this transformation.
Currently, Tesla holds a significant position in the ARK Innovation ETF, showcasing its value within Ark Invest’s holdings. Despite selling Tesla shares during a specific price range, Wood emphasized that the current market conditions, with Tesla experiencing a 60% downturn, do not justify abandoning the stock, particularly for investors bullish on Tesla’s prowess in the autonomous driving realm.
Wood exuded confidence in Tesla’s potential to dominate the robotaxi market, touting the latest Full Self-Driving release as a significant leap in technology. Describing the improved precision and human-like driving experience of the latest release, Wood emphasized Tesla’s role as a leader in merging robotics, energy storage, and artificial intelligence.
Labeling Tesla as the most extensive AI undertaking globally, Wood emphasized the necessity for market participants to grasp the profound impact of the convergence of these three transformative technologies, setting the stage for Tesla’s future growth trajectory.
Wood projected a significant shift towards electric vehicle adoption, with Tesla at the forefront, foreseeing up to 85% of new vehicle sales being electric within five years, with Tesla stock potentially reaching $2,000 during that period.
TSLA Performance: Despite a 32% decline in Tesla shares year-to-date, Wood’s bullish outlook remains unwavering. Tesla stock edged up by 0.68% to $167.77 on Wednesday, reflecting underlying market dynamics.
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