Ark funds have wolfed up 806,663 Tesla shares in January alone, not too long ago valued at $105.4 million.
Tesla shares have plunged 58% during the last year amid worries about manufacturing and demand points. Traders additionally aren’t too thrilled with Chief Government Elon Musk’s preoccupation together with his newly-bought Twitter.
However Wood sees massive features forward for the inventory. “Simply from electrical automobiles there may very well be virtually a fivefold enhance on this inventory through the subsequent 5 years,” she mentioned in a webinar cited by CNBC.
“And when you imagine in autonomous vehicles in any respect, it’s nearer to 13 occasions through the subsequent 5 years. So we’re as bullish about Tesla as now we have ever been.” 5 occasions the latest worth could be $653, and 13 occasions could be $1,699.
The corporate has applied massive international worth cuts, and Wood thinks that’s a sensible technique. “Tesla goes to be very aggressive in pricing,” she mentioned.
“Tesla can afford to do that. It’s bought the bottom value construction and is innovating essentially the most aggressively. The opposite auto producers should comply with these worth declines, however it’s going to harm them from a margin and profitability perspective fairly considerably.”
Wood’s Returns Tumble
In the meantime, Wood’s funding efficiency hasn’t precisely overwhelmed the monetary world over the previous yr, as her younger expertise shares have slumped. Ark Innovation ETF has slid 53% throughout that interval and 78% from its February 2021 peak.
Wood has defended her technique by noting that she has a five-year funding horizon. However the five-year annualized return of Ark Innovation was destructive 1.48% via Jan. 19, in contrast with the S&P 500’s optimistic return of 8.67%.
The fund’s efficiency additionally doesn’t come near Wood’s purpose for annualized returns of 15% over five-year durations.
Ark Innovation’s subpar returns might lastly be beginning to push buyers away. The $6.6 billion fund registered a web funding outflow of $382 million prior to now month, in accordance with ETF analysis agency VettaFi. Nevertheless it nonetheless notched a $1.59 billion influx over the previous yr.