The share price of Woods preferred had actually fallen by a 3rd since the beginning of the year. The business even cut rates on its primary product line, and some even feared that a personal bankruptcy filing might be impending.
The stock, obviously, is Tesla (NASDAQ: TSLA), and absolutely nothing occurring with the business 1 1/2 years ago deterred Wood from her bullish views. “We think the negative sentiment is pretty astounding,” she stated in a CNBC interview. Wood saw gross margins for the businesss products rising over time and indicated the supplementary potential of autonomous-vehicle technology as a huge tech possession on which no one at the time was putting much worth.
In terms of competitors, Wood noted, Tesla was building its own competitive benefit by constructing the go-to location of work for those interested in innovation. “Its getting all the actually terrific software application engineers,” she told CityWireUSA. “Tesla is taking all the oxygen out of the room for the other automakers.”
It was long prior to that, in early 2018, when Wood put a relatively extravagant $4,000 per-share rate target on the stock. By early 2020, she had upped that call to $15,000 per share, with a time frame of 2024.
In spite of all her critics, Wood was right. Her bullish calls were made before Tesla did its 5-for-1 split, so the old $4,000 and $15,000 price targets exercise to $800 and $3,000, respectively, post-split. Tesla hit $800 per share previously this year and remains near that level. Thats taken $10,000 invested this time last year at a level more detailed to a split-adjusted $160 per share and turned it into nearly $50,000.
Theres a brand-new star in the investing space, and her name is Cathie Wood. The founder of the ARK Invest family of actively managed exchange-traded funds has revolutionized the market, eschewing passive index tracking in favor of excellent old-fashioned stock picking. All 5 of Woods ETFs have more than folded the previous year, and all 5 function varied portfolios with a number of lots stocks among their holdings.
Nevertheless, theres one stock that Wood has applauded more than any other. Its been an integral part of her ETFs holdings over the past year, and its performance has actually been vital to the success of ARK Invest. Below, well share what Wood has stated about this company and whether she thinks it still has excellent growth prospects for the future.
The only bull in a space loaded with bears
After a stock has soared, its simple to be bullish. Wood was thrilled about her preferred stock long prior to it was red-hot– and even when lots of thought it was on the verge of collapse.
Image source: Getty Images.
TSLA data by YCharts.
As for Tesla reaching $3,000 per share, that may take a couple of more years. However Wood hasnt pulled back that call and is still adding to whats already an extensive position in Tesla in her ARK Invest ETFs.
Big bets on Tesla
You will not discover a stock among ARK Invests ETFs that has more cash purchased it than Tesla. The following ETFs have positions:
A minimum of in the meantime, Wood hasnt discovered any way to consist of Tesla in the holdings of ARK Invests genomics or fintech ETFs. However, with the Elon Musk-led company, you never understand what might be in store.
Buying more Tesla
In spite of those big positions, Wood stays bullish on Tesla. Just this week, she said that ARK Invest has actually been buying shares. Wood pointed to the potential worth of ride-hailing yet another market for Tesla to take advantage of.
Tesla continues to inspire both bearish and bullish calls throughout the financial investment neighborhood. But two things are specific: Woods belief in the EV leader hasnt fluctuated, and hence far, her calls about her preferred stock have actually panned out very well for ARK Invests shareholders.
Theres a brand-new star in the investing space, and her name is Cathie Wood. The stock, of course, is Tesla (NASDAQ: TSLA), and nothing happening with the business 1 1/2 years ago prevented Wood from her bullish views. In terms of competition, Wood kept in mind, Tesla was constructing its own competitive advantage by constructing the go-to place of work for those interested in innovation. In spite of those huge positions, Wood remains bullish on Tesla. Wood pointed to the potential value of ride-hailing as yet another market for Tesla to tap into.
The flagship ARK Innovation ETF (NYSEMKT: ARKK) is ARK Invests biggest active ETF and holds 3.1 million shares worth almost $2.48 billion at recent rates. Tesla makes up nearly 9% of the funds total possessions.
ARK Autonomous Technology & & Robotics ETF (NYSEMKT: ARKQ) is much smaller but has an even bigger concentration in Tesla stock. The fund holds about 511,000 shares valued at more than $400 million, comprising just under 10% of the ETFs possessions.
Another 1 million shares of Tesla are in the hands of ARK Next Generation Internet ETF (NYSEMKT: ARKW). Those shares have a value of simply shy of $800 million, representing 8.5% of assets under management.