Cathie Wood said Ark Invest remains bullish on Tesla and continues to buy shares of the electric car maker.
“Our confidence in Tesla has grown as we have researched what division could add. It could severely limit the risks, it is a much more profitable business than electric vehicles,” Wood told CNBC’s Bob Pisani on Wednesday’s “ETF Edge”. “Even though Tesla has a bit of a debate over whether or not they should launch a human-riding equation network, it would be a very good bridge that we think is in line with their autonomous strategy and we are thought they had decided to do so. “
Ark Invest’s main asset – Ark Innovation – entered $ 5.3 billion in inflows this year alone, according to FactSet. The ETF, which trades under the ARKK ticker, is up nearly 20% this year after a dramatic gain of nearly 150% in 2020. Tesla is the largest holder in Ark Innovation, making up more on 8.5% of the total weight of the ETF.
Ark reports on his trades every day and these updates reflect the purchase at Tesla, Wood said. Shares of the electric automaker were down more than 2% on Wednesday, although they struggled slightly higher on Wood’s views. Tesla stock is down 5% in the last month, but still up 386% over the past 12 months.
“As time goes on and we learn about their artificial intelligence experience, the 30 billion miles of driving data they’ve collected in the world, no one is coming close … I think Google could be at 30 million, compared to 30 billion and we know that in the AI [artificial intelligence] it is the world ‘s AI and autonomy that the company will win with the best data and the best quality data, “Wood said.
Wood said the likelihood of successful autonomous vehicles going up is so Ark’s price target will continue at some point.
Timber is a longtime bitcoin bull, with a big bet on the Grayscale Bitcoin Trust. Wood told CNBC she expected institutional interest in bitcoin this year but Tesla’s purchase of the digital currency was a surprise.
Ark Invest has more than $ 58 billion in assets under management.
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