Cathie Wood mentioned in an interview that Tesla is a solution to the economy’s turmoil. What gave Cathie Wood the authority to speak in such a manner of Tesla, and why should we lend an ear to what she says? The answer is well inscribed in her professionalism and records.
Cathie Wood is the founder and CEO of Ark-invest, an asset management company that focuses on providing investment solutions to investors who want to make a fortune from long-term investment growth in the stock market. They invest mainly in disruptive innovations and genomics.
After creating the company in 2014, Ark-invest has been able to achieve an average yearly return of around 45 per cent throughout half a decade. Today ark-invest, led by Cathie Wood, manages assets worth 14 billion dollars. Wood is an expert analyst who backs up her prediction and market analysis with available data, which is why you shouldn’t miss out on today’s blog.
As an innovation investor, Wood has always been bullish on Tesla stock despite all the downtime facing the company. She even once predicted that Tesla would one day grow to a three trillion-dollar market value, which would make them the most valuable company worldwide.
Why Tesla Stock Will Continue to Increase Despite the Economic Crisis
Generally, the stock market is experiencing a red season as the government keeps taking measures to put a stop to inflation and the plunging recession. In this regard, Wood believes that innovation will help solve the food and energy crisis and other issues plaguing the global economy. “Tesla is a solution to the economy’s turmoil” this was her statement in an interview with Yahoo Finance.
“There’s been an accelerated consumer preference towards electric vehicles, like Tesla, because of oil prices. And we think there’s no stopping that trend now,” she said.
Wood cites gasoline demand over the summer, which plunged to levels not seen since 1997.
“That’s real demand destruction,” she said. “It couldn’t have happened without electric vehicles at the margin, taking a huge share from traditional automobiles.”
Her team of analysts believes gas-powered vehicles will be obsolete within the next five to 10 years.
“The traditional auto industry has to figure out a way to migrate into electric vehicles and into the next big phase we think Tesla is leading – the autonomous taxi platform phase,” said Wood.
When asked about her method of picking disruptive innovation stocks that won’t get hammered down by government policy or political interests, Wood mentioned that Ark-invest has a thesis that guides their observation of government policies on the stock they are willing to own.
She implied that they were previously concerned about government intervention in autonomous driving and robotaxi. It’s quite interesting that the government concentrates on facts from traffic data. The data shows that eight to ninety per cent of vehicle accidents on the road are caused by human errors.
This means that the revolution into autonomous driving can reduce accidents to a reasonable degree and save even more lives than human driving. The government revealed that Tesla owners have more safety compared to other car owners. If the government were to follow the data, they’ll realize that innovative companies like Tesla are solving humanity’s problems and improving convenience.
We hope that the government finds this incredible and permits full self driving. It will be a growth level for electric automobiles and further innovations like self-driving that we believe Tesla is taking the lead.
Earlier in an open-source valuation of Tesla stock, Ark’s investment estimated that the robotaxi business would make up 62 per cent of Tesla’s value and above 50 % of the company’s expected earnings.
Ark invests now owns more than three million Tesla shares accounting for around 10 per cent of the company’s holdings. This shows the extent to which Wood believes in Elon Musk’s ability to take Tesla to the next level and explains her bullishness on Tesla stock. As Tesla stock skidded after the company’s quarter three report, Ark-invest went against the noise and stole the opportunity to buy more Tesla stock.
Some analysts expressed concerns about Tesla’s lineup of products that have not been on the market for years. However, investors still have more to hope for as the delivery of the semi-truck is set to begin by December, and the Cybertruck is on its final lap, according to the CEO, Elon Musk.
What holds for Tesla with the present state of the global economy? Musk himself has the answer in his statement where he referred to Tesla as a “recession resilient” business because the world is transitioning from traditional to electric vehicles.
This is in line with Wood’s statement earlier that Tesla is a solution to the world’s economic problems and will have its fair share of increased value as a problem-solving business.
If you enjoy this blog, kindly hit the like button to encourage the clever mind behind it and share it so other investors can see the development in innovative investments like Tesla. Remember to also signup to our newsletter for more updates. You can check out also this related posts like ”Tesla Stock and Increased Growth Potential“. What do you think of Tesla stock in the next half a decade? Put your answer in the comment section below.
Recommended books for further reading:
- How to Make Money in Stocks: A Winning System In Good Times And Bad
- A Beginner’s Guide to the Stock Market: Everything You Need to Start Making Money Today
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
- The Five Rules Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market
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