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Cathie Wood's Confidence In Tesla 'Couldn't Be Higher,' Says Elon Musk-Led Automaker Sits In 'Driver's Seat' Of EV Boom

Published 27/09/2022, 18:03
© Reuters.  Cathie Wood's Confidence In Tesla 'Couldn't Be Higher,' Says Elon Musk-Led Automaker Sits In 'Driver's Seat' Of EV Boom
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Tesla Inc (NASDAQ: NASDAQ:TSLA) is still Ark Invest's largest holding, and founder and CEO Cathie Wood remains as bullish as ever on the Elon Musk-led company.

Related Link: Cathie Wood Says Powell's 'Sledgehammer' To 'Slay' Inflation Way More Powerful Than Volcker's In 1980s: 'Fed Could Undermine Its Legacy'

What To Know: Ark Invest's success has been largely tied to Tesla, as Wood was an early supporter of the EV company. Ark spent most of last year trimming its Tesla position, but Wood has been buying Tesla stock again in recent months.

"It is our top holding still and our confidence couldn't be higher," Wood said Tuesday on CNBC's "Squawk Box."

Tesla represents a 10.68% weighting in Ark's flagship fund, the ARK Innovation ETF (NYSE: ARKK). Zoom Video Communications Inc (NASDAQ: ZM) and Roku Inc (NASDAQ: ROKU) are the other two stocks in the fund with more than a 5% weighting.

Tesla has held up much better than most of the other stocks in the Innovation fund because it's included in the broad-based indices now, Wood said. Ark has used Tesla as a trading vehicle because of its relative outperformance, but the firm remains extremely confident in the stock longer term.

Close to 8 million electric vehicles will be sold around the globe in 2022, she noted. Wood expects electric vehicle sales to jump to 60 million within five years.

"And we think Tesla is in the driver's seat," Wood said.

Related Link: Tesla Bounces Higher: Is The Stock Charged Up For Another Bull Cycle? Or Bracing For Downtrend?

BZ Pro Insights: In the company's most recent quarter, Tesla delivered 254,695 vehicles, according to Benzinga Pro. New reports suggest the company expects to deliver a "very high volume" of vehicles near the end of the current quarter.

TSLA Price Action: Tesla has a 52-week high of $402.66 and a 52-week low of $206.85.

The stock was trading 1.15% higher at $279.19 in Tuesday's session.

Photo: courtesy of Tesla.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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