Despite the impending avalanche of electric vehicles from Ford, GM, and Toyota, Cathie Wood, a well-known investor, remains confident on one of her long-time favorite firms, Tesla (TSLA).
In an exclusive interview with Yahoo Finance Live on Friday, the founder, CEO, and CIO of Ark Invest stated that her base case for Tesla is $3,000 per share.
“Our estimate for Tesla’s success has gone up. The main reason for that is their market share. Instead of going down from year-end 2017 to today, it has actually gone up fairly dramatically,” Wood explained.
Tesla continues to be a top holding in several of Wood’s innovation-focused ETFs. Tesla, for example, is the top holding in the firm’s flagship ARK Innovation ETF, accounting for 10.49 percent of the ETF’s holdings.
The new EVs from the more established automakers, according to Wood, only serve to validate Tesla’s plan. Furthermore, Wood expressed optimism about the market potential for electric vehicles in China.
The stock of Tesla rose 0.19 percent to $733.75 on Friday.
Source: Yahoo News