Tesla Inc TSLA bull Cathie Wood is back with supporting statements for the electric vehicle company being one of the most innovative companies in the world.
What Happened: A month after saying her confidence in Tesla couldn’t be higher, Ark Invest CEO Wood is back with another take on how Tesla is changing the world.
“We think with supply chain issues, and with food and energy crisis … that once again, innovation is going to help solve these problems,” Wood said in an interview with Yahoo Finance.
Rising oil prices led to a shift in the automotive industry.
“There’s been an accelerated consumer preference towards electric vehicles, like Tesla, because of oil prices. And we think there’s no stopping that trend now.”
Wood said gasoline demand in the summer of 2022 was lower than levels during the COVID-19 pandemic and hit levels not seen since 1997.
“That’s real demand destruction. It couldn’t have happened without electric vehicles at the margin, taking a huge share from traditional automobiles.”
Wood said gas-powered vehicles could be obsolete in the next five to 10 years.
The Ark Invest CEO also said that the traditional automotive industry needs to move to the next phase of growth like Tesla, which is autonomous vehicles.
“Tesla is a solution to the problem,” she said.
Related Link: ‘I Really Do Believe The Fed Is Making A Mistake,’ Cathie Wood Pens Open Letter To The Federal Reserve
Why It’s Important: Tesla is a large holding in three Ark Invest ETFs making up 9.3%, 8.8% and 10.4% in the respective Ark Innovation ETF ARKK, Ark Next Generation Internet ETF ARKW and the Ark Autonomous Technology & Robotics ETF ARKQ. The electric vehicle company is the largest holding in each of the three ETFs.
Wood isn’t worried about the price of Tesla falling over 49% in 2022.
“All stocks are experiencing difficulty in this environment as the market tries to understand how far the Fed is going to go and how deep this recession is going to be,” Wood said.
TSLA Price Action: Tesla shares closed Friday at $204.99.
Image and article originally from www.benzinga.com. Read the original article here.