Tesla Inc TSLA bull Cathie Wood is back with statements supporting the electric vehicle company as one of the most innovative companies in the world.
What happened: A month after I told her Trust in Tesla couldn’t be higher, Ark Invest CEO Wood is back with another take on how Tesla is changing the world.
“We think that with supply chain issues and with food and energy crises… once again, innovation will help solve those problems,” Wood said in one interview with Yahoo Finance.
Rising oil prices led to a shift in the automotive industry.
“Due to oil prices, there is an accelerated consumer preference for electric vehicles like Tesla. And we believe that this trend is now unstoppable.”
Gasoline demand in the summer of 2022 was lower than during the COVID-19 pandemic, Wood said, reaching levels not seen since 1997.
“This is real demand destruction. This would not have been possible without fringe electric vehicles, which occupy a large chunk of traditional automobiles.”
Wood said gas-powered vehicles could become obsolete in the next five to 10 years.
The CEO of Ark Invest also said that the traditional auto industry needs to transition to the next phase of growth like Tesla, the autonomous vehicle.
“Tesla is a solution to the problem,” she said.
Related link: “I truly believe the Fed is making a mistake,” Cathie Wood wrote in an open letter to the Federal Reserve
Why it matters: Tesla is big keep in three Ark Invest ETFs, accounting for 9.3%, 8.8%, and 10.4%, respectively Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW and the Ark Autonomous Technology & Robotics ETF ARCQ. The electric vehicle company is the largest holding in each of the three ETFs.
Wood isn’t concerned that Tesla’s price could fall over 49% in 2022.
“All stocks struggle in this environment as the market tries to understand how far the Fed will go and how deep this recession will be,” Wood said.
