Cathie Wood of Ark says Tesla could account for 25% of auto market in five years
Cathie Wood, Founder, CEO and Chief Investment Officer of ARK Investment Management, is no stranger to bold appeals to electric vehicle maker Tesla. She provided another in a virtual interview on Wednesday with Barron Senior Editor Lauren R. Rublin.
“If Tesla is the first to be successful in autonomy in the United States, we start to believe that not only will Tesla take this bigger share of the electric vehicle market, we think it could take 20 to 25% of the market share of electric vehicles. Marlet. the total auto market in five years, ”said Wood.
Wood became a top manager after her portfolios grew in 2020 through innovation-driven choices like Tesla. She said the call for Tesla’s market share would be published in an ARK Big Ideas report in January. The ARK Innovation ETF generated a staggering 153% return in 2020, but traded mostly sideways in 2021.
Wood believes Tesla stock, which is now at $ 1,089, will reach $ 3,000 in 2025. She estimates that there is about a 50% chance of success for Tesla’s self-driving efforts, which she says , is the most important variable in bringing Tesla stock to its target of $ 3,000. . She believes that autonomous vehicles, operated in autonomous taxi networks, will mean that design will be less important in the future than the vehicle’s ability to get people to their destinations.
“We believe that prices for electric vehicles will fall below the prices of gasoline vehicles and continue to decline,” said Wood. “Our final thought is that by 2026, the average electric vehicle will cost around $ 15,000.”
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Tesla is not in danger from competitors like Rivian Automotive, Lucid Group and other electric vehicle startups, Wood said in response to a question from a listener. She said that while such companies may be successful in space, she believes Tesla’s batteries are around three to four years ahead of their competition. She also notes that neither are currently pursuing autonomous transportation, an area where Tesla can differentiate itself.
When it comes to traditional automakers, Wood believes Ford Motor and General Motors invested too little, too late. She is keeping a close watch on their autonomous investments and partnerships, but believes that as electric vehicles continue to take part in gasoline-powered machines, traditional automakers will face a toll.
“It will be terribly difficult for these companies to manage over the next five to ten years,” said Wood. “And we’d be willing to bet they won’t be alive in their current state.” They can be in combination with someone else, or they can go bankrupt.
Aside from Tesla and his bullish electric vehicle thesis, Wood discussed his positive outlook on Bitcoin and other cryptocurrencies. She also believes that non-fungible tokens will continue to take off as millennials and Gen Zers forgo physical consumption to save money, especially in digital status symbols.
“I believe it’s real,” Wood said. “I don’t think it’s fleeting. We are moving from the physical world to the convergence between the physical world and the digital world.
This article was published by Barron