In an interview with CNBC, ARK Invest’s Cathie Wood spoke of her and the company’s growing confidence in Tesla (TSLA) as the company continues to buy shares.
“Our confidence in Tesla has grown as we’ve done research on what ride-sharing potentially could add. It could limit the risks significantly, it’s a much more profitable business than electric vehicles,” she said to CNBC’s Bob Pisani on the network’s show, ETF Edge.
“Even though there is some debate at Tesla whether or not they should launch a human-driven ride-hailing network, it would be a very good bridge we think to their autonomous strategy and we think they will decide to do that.”
ARK Invests’s fund, Ark Innovation, has raised $5.3 billion this year alone, the article noted. Trading under the ticker ARKK, it is up nearly 20% this year after a gain of almost 150% last year. Ark Innovation’s largest holding is Tesla, which makes up more than 8.5% of the fund’s total weight. ARK’s daily reported trade updates show its growing position in Tesla. Wood added her thoughts on how she and her team learn about the company’s AI expertise.
“As time goes on and we learn about their artificial intelligence expertise, the 30 billion miles they have collected of real-world driving data, no one comes close. … I think Google might be at 30 million, compared to 30 billion, and we know that in the AI [artificial intelligence] world — and autonomous is AI — that the company with the most data and the best quality data will win,” she said.
*Note: I own tiny shares in ARKK and TSLA. I believe in both companies and am holding.