Cathie Wood, CEO and Chief Investment Officer of ARK Investment Management LLC, speaks at the Sooner Than You Think conference in Brooklyn’s New York District on Tuesday, October 16, 2018.
Alex Flynn | Bloomberg | Getty Images
Cathie Wood said Ark Invest is still on Tesla and continues to buy shares in the electric carmaker.
“Our confidence in Tesla has grown as we researched what could add to the travel sharing potential. It could significantly limit the risks, it’s a much more profitable business than electric vehicles,” Wood told Bob Pisani. from CNBC on the ETF Edge on Wednesday. “Even if there is a debate at Tesla whether or not they should launch a people-led travel network, it would be a very good bridge that we think about their autonomous strategy and we think they will decide to do that.”
Ark Invest’s flagship fund – Ark Innovation – has earned $ 5.3 billion in revenue this year alone, according to FactSet. The ETF, which trades under ARKK, is up nearly 20% this year, after an impressive gain of almost 150% in 2020. Tesla is the largest holding company in Ark Innovation, accounting for more than 8.5% of its weight. total ETF.
Ark reports its transactions every day, and these updates reflect the purchase of Tesla, says Wood. Tesla shares fell more than 2% on Wednesday, although they ticked slightly more in Wood’s comments. Tesla shares have fallen 5% in the last month, but have risen 386% in the last 12 months.
“As time goes on and we learn about their expertise in artificial intelligence, the 30 billion miles they’ve gathered from real-world leadership data, no one even comes close, I think Google could be at 30 million, compared to 30 billion and we know that in AI [artificial intelligence] global and autonomous is AI, which will win the company with the most data and the best quality data “, added Wood.
Wood said the likelihood of successful autonomous vehicles is increasing and therefore the Ark price target will follow at some point.
Wood is a long-term bitcoin bull with high bets on the Grayscale Bitcoin Trust. Wood told CNBC that he 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.