ARK Invests Cathie Wood, the leading investor in technologies, said she is willing to sell her large stakes in Tesla. She would take down her flagship fund’s large stakes in Tesla, provided it reaches $3000 by next year.
Cathie Wood, ARK Invest’s chief executive, spoke at the Morningstar Investor Conference on Wednesday. While speaking at the conference, Cathie Wood mentioned her plans for Tesla. She also debated Rob Arnott in the meeting. Arnott is sceptical of high growth stocks such as Tesla.
The electric vehicle maker’s stock is around $750 but her base price target in five years is $3000. In the conference, Wood listed some of the advantages of electric vehicles. She emphasised that she hasn’t had to go to a gas station since September 2018. Cathie Wood also mentioned the price drop in the battery pack systems.
Due to the declines, Wood expects that the price of electric vehicles will soon fall under the price of a regular gas-powered car! This trend might happen next year and continue till 2025.
It was a dramatic year for Cathie Wood, and her firm’s ETF’s beat most of the U.S. market last year. Her company, ARK Invest, has outperformed in most markets in 2020 with up to 152% returns.