ARK Invest's Cathie Wood said she remains bullish on Tesla (NASDAQ: TSLA) shares despite growing fears of a US recession and the shutdown of the manufacturer's Shanghai factory due to COVID-19. Due to the likely approach of a recession, investors will turn to technology to solve economic problems, the analyst said.
"What we said during COVID about innovation solving problems will move into overdrive," she told a webinar, with Tesla poised to "deliver truly exponential growth for many, many years" as it expands its autonomous driving programs, according to Reuters. Wood is expected to announce a new model and price target for TSLA in the coming days.
The analyst's bullish stance on technology comes as yields of two-year Treasuries have moved above those of 10-year Treasuries in recent weeks, which is often considered a precursor to a recession. Wood said she expects "truly disruptive innovation" to come back into favor as investors turn to technology to solve economic problems.
ARK Invest said last year that it expects Tesla to reach $3,000 per share by 2025. According to the company's analysts, Tesla is going to deliver from 5 to 10 million vehicles as soon as 2025.
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