Ark Invest

Auto Analysts Will Never Understand the True Tesla TSLA Valuation, Cathie Wood of Ark Invest Explains

Auto Analysts Will Never Understand the True Tesla TSLA Valuation, Cathie Wood of Ark Invest Explains

Many of us notice that Wall Street analysts evaluate Tesla shares in a strange and perhaps even meaningless way. The reality is that no traditional auto analyst is in a position to give a precise assessment and price forecast, taking into account the achievements that Tesla has in various fields—nor considering what its future prospects may hold. 

Founder, CEO, and CIO of ARK Invest, Cathie Wood, joined Nathaniel Whittemore. During the conversation, she explains her conviction in Tesla—before the market started catching up— and why auto analysts cannot correctly evaluate the company.

Solving The Money Problem points to the highlights from the interviews that relate to Tesla and why Wall Street auto analysts cannot properly assess the company.


Tesla has a market cap of $400 billion, yet it is still not included in the index, which is absurd, Cathie says. She explained that, in order to have a chance at properly analyzing Tesla, firms need analysts in robotics, energy storage, artificial intelligence, software service, and OTA updates.

Auto analysts are good at what they do, but they are not equipped to analyze Tesla. Autonomous EVs and Tesla are not what auto analysts do, which is why they are so inept at analyzing the California-based manufacturer; they just don't have the qualifications to do it, Wood said.

She said that ARK Invest analysts who analyze Tesla have specialized knowledge in precisely those areas in which the company is developing. In the firm, Tesla is analyzed by 3 specialists, each of whom is a professional in their field. These analysts strive to find the truth because this is the mission of the company.


It is for these reasons that likely none of the existing auto analysts is able to correctly understand Tesla nor give it an adequate evaluation. Without specialized knowledge in specific areas, this is simply a fool’s errand.

© 2020, Eva Fox. All rights reserved.


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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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