Wood from ARK Invest: ‘Our confidence in Tesla has gone up’, New TSLA Price Target in 1-2 Weeks

Wood from ARK Invest: ‘Our confidence in Tesla has gone up’, New TSLA Price Target in 1-2 Weeks

Photo: Cathie Wood

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, which will be announced in 1-2 weeks. During an interview with the СNBС, ARK Investment Management founder and CEO Cathie Wood said that the firm is confident in Tesla for a number of reasons.

"[Tesla] didn't lose share in the EV market when the luxury brands started bringing EVs to the market," said Wood. While analysts expected Tesla's share to begin to decline, the company's market share rose instead. In 2020, it exceeded 20%, while in the US, it reached 80%!

Autonomous technology is another reason why ARK is confident in Tesla. Recently, the company's CEO Elon Musk tweeted that Tesla is ready for wider distribution of FSD Beta, which indicates that the company will achieve full autonomy much sooner than most analysts expect.

"The probability we've put on Tesla winning the lion's share of the autonomous taxi market in the US also has gone up, so you can imagine the price targets have gone up significantly."

In addition, Tesla has achieved a reduction in the cost of battery technology, which is key in the electric vehicle market.

The design of its own AI chip, whose technology is four years ahead of that of Nvidia (which was a few years ago), shows the company's innovativeness and its strength. "Tesla has more data collected than any other company by orders of magnitude. Not just by any other company, but by all other companies out there. The largest pool of data with the highest quality is going to win the AI ​​game," Wood said.

Tesla is also the only company in the world that can improve the performance of its cars with OTA updates. Wood shared her personal experience with updates to her Model 3.

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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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