ARK Invest CIO Cathie Wood said on Thursday that buying Tesla stock is the best way to add artificial intelligence (AI) to an investment portfolio.
Tesla is a top holding in three of Wood’s funds, and she said on Thursday that she thinks the company’s stock price has the potential to surge by up to eight times its current value — specifically because it’s undervalued as an AI stock.
“Actually Tesla is one of the most profound AI companies out there — that’s why it’s at the top of ARKK, ARKQ, ARKW has a big position in it as well,” Wood said to Fox Business. “It is not an auto company, it is a technology company.”
Wood continued to reiterate autonomous taxi platforms are the “biggest opportunities” out there in the next 5-10 years. She believes Tesla is in the pole position and the primary platform in the U.S.
ARK Invest has a Tesla stock price target of $1,500-1,600 USD in next five years, up from today’s stock price of $200 USD. Wood says one-third of this growth will come from scaling up EV production and the rest will come from AI.
ChatGPT and other AI-based engines have gained widespread popularity in recent months, and Wood believes that products like these are set to disrupt traditional tech companies such as Alphabet, Google parent company, which is working on a rival program to ChatGPT.
“The world is changing incredibly quickly here,” Wood added. “We’re seeing this with AI of course, all the news around ChatGPT that’s captured the public’s imagination and captured businesses’ imagination, it’s happening very quickly, and our portfolios are very focussed on the future.”
Leading up to Tesla’s recent stock rebound, ARK Invest was buying the automaker’s stock ‘dip’.
Cathie Wood’s $ARK bought 100,982 shares of $TSLA today #ARRK #ARKQ
— TeslaNorth.com (@RealTeslaNorth) January 11, 2023
