Cathie Wood, CEO of Ark Invest, has long championed Tesla Inc and its CEO Elon Musk, advocating the company’s classification as a technology stock rather than a traditional automotive company.
Elon Musk expressed his desire to increase his ownership stake in Tesla to 25%, citing the need for greater influence over the company’s artificial intelligence initiatives within the electric vehicle sector. Wood, in an interview with CNBC, lauded Musk as a visionary leader, dubbing him a “renaissance man” and describing him as the era’s premier inventor. The news reflects Wood’s ardent support for Musk’s strategic vision.
Wood emphasized the myopic nature of today’s investors, pointing out their fixation on short-term gains and dividends, instead of recognizing and investing in the enormous opportunities unfolding in the present. She stressed the importance of visionary leaders who are willing to challenge the dominance of short-term-minded shareholders.
Regarding Hertz Global Holdings’ decision to scale back its electric vehicle initiatives, Wood highlighted the initial learning curve associated with electric vehicles and the long-term cost benefits. She underscored the steady rise of electric vehicle sales worldwide, contrasting it with the less impressive growth of traditional gas-powered vehicle sales. Wood also noted that Uber Technologies’ endorsement of Tesla vehicles signals an undeniable trend towards electric mobility.
Tesla’s Significance in Ark Funds ETFs: Tesla constitutes a substantial position in several Ark Funds ETFs, such as the Ark Autonomous Technology & Robotics ETF (ARKQ), where it comprises nearly 11% of assets. Additionally, Tesla holds a prominent position in the Ark Innovation ETF (ARKK) and the Ark Next Generation Internet ETF (ARKW), underscoring its significance in Ark Invest’s portfolios.
However, these developments have not been without their share of controversy. Wedbush analyst Dan Ives opined that Musk’s quest for greater control could potentially disrupt Tesla’s AI-focused projects. He stressed the critical importance of integrating all AI initiatives within Tesla’s operations and expressed confidence in the company’s ability to resolve the issue within the next six months. Ives reiterated the irrefutable link between Musk, Tesla, and the pivotal role of AI in shaping the company’s future.
TSLA Price Action: As of the latest trading session, Tesla shares are priced at $209.19, with a year-over-year increase of 45%.
