That’s Cathie Wood, founder and chief of ARK Invest, explaining why she still has a price target of $2,000 a share for Tesla Inc. despite the company’s recent troubles.
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Wood discussed her bullish case for Tesla TSLA during an interview with CNBC on Wednesday, saying, “Now is not the time to run for the hills,” even as Tesla shares have fallen more than 30% since the start of 2024.
The company is poised for a turnaround, as in a few years, electric cars and trucks will comprise 80% of all vehicle sales, Wood said. Wood has been a faithful Tesla bull for years, and once had a price target of $5,000 a share for the stock.
She pegged her bull case to Tesla’s plans to roll out a robotaxi, which could drive up to $10 trillion in revenue by 2030, she said, adding that the robotaxi could “save lives.”
Her firm, ARK Invest, bought millions of dollars worth of Tesla shares over the past week ahead of a dismal first-quarter sales report that pushed the value of those shares even lower.
Tesla shares are down 33% so far this year at $166.34 a share in early Wednesday trade, according to FactSet data. Wood’s ARK Innovation ETF ARKK is down 9.4% year-to-date at $47.47 a share, while her ARK Autonomous Technology & Robotics ETF ARKQ is down 7.8% at $53.22. The ARK Next Generation Internet ETF ARKW is up 5.5% at $80.05 a share. All three funds have Tesla as a top holding.
On Tuesday, Tesla shares fell nearly 5% after the company revealed that it delivered fewer new vehicles than Wall Street analysts had expected during the first quarter. What’s more, the number of vehicles delivered actually shrank compared with the same period a year earlier.
Wood also touched on the topic of bitcoin’s recent record-setting rally. She cited a rash of currency devaluations around the world as underappreciated contributors to the cryptocurrency’s advance.
“There is something else going on around the world. There are currency devaluations around the world that people aren’t talking about,” Wood said.
On March 14, bitcoin hit a record high north of $73,000 a coin, according to FactSet data. Many analysts attributed the cryptocurrency’s latest bull run to the launch of a flurry of spot-bitcoin ETFs, including the ARK 21Shares Bitcoin ETF, which had more than $2.5 billion in assets as of Tuesday’s close, according to ARK’s website.
The Nigerian naira USDNGN was abruptly devalued by more than 50% in February to a record low against the U.S. dollar, the second major devaluation in a year. The African currency has since clawed back some of that weakness and traded at 1,289 naira to the greenback early Wednesday.
Egypt’s currency, the Egyptian pound USDEGP, abruptly fell by 40% against the buck last month amid a shortage of foreign currency. Earlier this year, the Argentine peso USDARS was devalued by more than 50% by newly installed President Javier Milei earlier this year.
She also pointed to the fact that bitcoin rallied last year as a handful of regional banks in the U.S. collapsed, sparking a short-lived panic that had global ramifications.
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