Ark’s Cathie Wood says she would sell Tesla at US$3,000 in 2022 as electric car maker’s most bullish investor sets price target
- Ark Investment Management’s base price target for Tesla is US$3,000 in five years, from the current US$750
- If the US$3,000 price target were to be reached in 2022, Ark would be getting out of Tesla, Wood said
The electric-vehicle maker’s stock is now roughly US$750 and her base price target in five years is US$3,000, she said. “If nothing were to change in our outlook and we got to US$3,000 next year, my guess is that we would be peeling out of it,” she said.
Arnott, the chairman of Research Affiliates, asked Wood how investment managers should decide when to get out of positions.
“What’s the sell discipline that can protect those gains?” he said. “What’s the sell discipline that can rotate you into undiscovered disrupters where the market is unaware of what they’re doing?”
Wood’s answer on selling Tesla came during the press briefing, when his question was repeated. But during the panel, she defended her famous Tesla bet.
Along with listing some of the advantages of electric vehicles – including that she hasn’t had to go to a gas station since September 2018 – she cited the price drops in battery pack systems.
It’s been a dramatic year for Wood after her firm’s exchange-traded funds (ETFs) beat most of the US market last year. Her flagship Innovation ETF is down 5 per cent this year after returning nearly 150 per cent last year.