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If Cathie Wood had to hold one stock for the next decade, it would be Tesla, she said in an interview.
Wood has been snapping up Tesla stock since shares of the EV maker closed out a dismal year in 2022.
She estimates the stock will soar to $1,500 a share over the next five years, marking a 675% increase.
If Cathie Wood had to buy one stock today and hold it for the next 10 years, it would be Tesla, the Ark Invest CEO said.
In a recent Twitter Spaces interview with Cardone Capital, the famed money manager professed her bullishness for Tesla stock, which is the largest holding in her flagship ARK Innovation ETF. Though Tesla is still recovering from a dismal performance 2022, Wood has poured more money into shares of the electric-vehicle maker, snapping up $47 million of the stock in a single week in January.
"Well, especially because of how much it's been pummeled recently, and we're known for this – I don't think it'll surprise – any of your listeners have heard of ARK, they've heard of Tesla," Wood said on Wednesday, when asked for her 10-year stock pick.
Her optimism comes after a difficult year for Elon Musk's car company, with shares plummeting 65% in 2022 amid rising inflation, interest rate hikes, and Musk's chaotic takeover of Twitter, which analysts say has damaged Tesla's brand.
But Wood remains bullish on Tesla, particularly after the company announced it would be slashing prices on key models in China, Europe, and the US. That's expected to revive some of the demand that fell off in the previous year, and the price cuts mean rival EV makers will "have trouble keeping up", Wood said in a separate interview with Yahoo Finance. She also thinks the company will be a leader in the delivery robot market, which Wood estimates will expand to one trillion dollars over the next decade.
Ark Innovation's stake in Tesla helped the ETF post a record monthly gain of 29% in January, with its holdings of the company now worth $733 million. Wood anticipates Tesla stock reaching $1,500 a share over the next five years, implying a 675% increase from current levels.
Read the original article on Business Insider