Cathy Wood, founder of Ark Investment, said on Wednesday that if Tesla, Inc.If she can reach her five-year target price of $3000 next year, she will not hesitate to liquidate her position.
Tesla, Inc. 's share price is currently around $750, and Wood had expected the stock to reach $3000 by 2025. "if there is no change in our outlook and we can reach $3000 next year, I guess we will leave quickly," she said at an investment conference on Wednesday. "
Ms. Wood attended a panel meeting at the Morningstar Investment Conference online on Wednesday, where she debated with veteran investor Rob Arnott, chairman of Research Affiliates. Arnault has always been sceptical of growth stocks with higher valuations, such as Tesla, Inc..
Arnold asked Wood how investment managers should decide when to exit their positions.
"what selling principles can protect these gains?" he said. What kind of selling principle can make you find subverters when the market doesn't know what they're doing? "
Wood defended his bet on Tesla, Inc.. In addition to listing some of the advantages of electric cars, including the fact that she doesn't have to go to gas stations since September 2018, she also mentioned the drop in the price of battery packs.
She said she expects the average price of electric vehicles to fall below that of fuel-fueled vehicles in the next year or so because of the drop in battery prices. The trend will continue until 2025, when she expects the average price of an electric car to be $18000, while the price of a regular fuel car will be around $25000 to $26000.
At the press conference after the group meeting, someone repeated Arnold's question, and Wood said that Tesla, Inc. would clear her stock to 3000 US dollars next year. Of course, this is just a joke.
Last year was dramatic for Wood, when her flagship fund, Ark Innovation ETF, outperformed most of its US peers with a return of nearly 150 per cent. But the fund is down 5% this year.
But Mr Wood continues to stick to her bet on disruptive technology and says she expects a compound annual return of 30 per cent for her flagship strategy. She also said she did not think there was a bubble in the US stock market.