Photo: ARK Invest
ARK Investment Management continues to strengthen its faith in Tesla (NASDAQ: TSLA) over the years as the company has and continues to develop in a number of key areas that will make it highly profitable. ARK's confidence that Tesla will be the leader in autonomous technology has increased in recent months, so the firm is preparing a new price target.
ARK Investment Management founder and CEO Cathie Wood is known as one of Tesla's strongest bulls. March 3, Wood joined Benzinga's "Raz Report" to share the firm’s thoughts on Tesla.
The analyst emphasized that Tesla has strong technologies, a history of miles driven, over-the-air updates and battery technology, which give her confidence in the future development of the company. Wood said ARK's confidence in Tesla's autonomous strategy also continues to grow and has intensified particularly in recent months, which coincides with the release of the FSD Beta in October 2020. Testers show in their videos the company's success in achieving full vehicle autonomy. Also recently, Tesla CEO Elon Musk said that FSD Beta will be presented to a wider public in Q2 2021, which indicates the significant achievement of the company in self-driving.
- Tesla is the largest position in the ARK Next Generation Internet ETF representing 9.3% of assets.
- Tesla makes up 10% of the flagship ARK ETF, the Ark Innovation ETF.
- The ARK Autonomous Technology and Robotics ETF has 10.2% of the assets in Tesla shares.
As ARK's conviction in favor of autonomous vehicles has increased, the fund's management company is working on a new price target for Tesla. "Just finished our model," said Wood. "Stay tuned," she teased.
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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.