Cathie Wooden says her confidence is rising in Tesla, Ark Make investments has been including to place
Cathie Wood said Ark Invest is still bullish on Tesla and continues to buy shares in the electric car maker.
“Our confidence in Tesla has grown as we researched what ridesharing could possibly add. It could significantly limit the risks, it is a much more profitable business than electric vehicles,” Wood told CNBC’s Bob Pisani on ETF Edge. On Wednesday. “While there is some debate at Tesla as to whether or not they should set up a human-powered hail network, this would be a very good bridge to their autonomous strategy and we believe they will choose to.”
Ark Invest’s flagship fund – Ark Innovation – has raised $ 5.3 billion in inflows this year alone, according to FactSet. The ETF, trading under the ticker ARKK, is up nearly 20% this year, after an impressive gain of nearly 150% in 2020. Tesla is the largest holding in Ark Innovation, accounting for more than 8.5% of the Total weight of the ETF.
Ark reports its trades every day, and these updates reflect the purchase in Tesla, Wood said. The electric carmaker’s shares fell more than 2% on Wednesday, despite having risen slightly on Wood’s comments. Tesla’s stock is down 5% in the past 12 months but is still 386% over the past 12 months.
“As time goes on, we’ll learn more of their artificial intelligence expertise, the 30 billion miles they’ve accumulated with real-world driving data. Nobody’s getting closer … I think Google could be 30 million compared to 30 billion and us knows that in the AI [artificial intelligence] Worldwide and autonomous, the AI is that the company with the most data and the best data quality will win, “added Wood.
Wood said the likelihood of successful autonomous vehicles is increasing and therefore Ark’s price target will follow at some point.
Wood is a longtime Bitcoin bull with big bets on the Grayscale Bitcoin Trust. Wood told CNBC it expected institutional interest in Bitcoin this year, but Tesla’s purchase of the digital currency came as a surprise.
Ark Invest manages more than $ 58 billion in assets.