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

Reading Time:2 minutes

Published: 10:41am, 23 Sep 2021Updated: 10:41am, 23 Sep 2021

Cathie Wood would sell Tesla if its price hit her five-year target in the coming year.

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.

The head of Ark Investment Management was speaking at a news briefing following a panel at the Morningstar Investment Conference Wednesday. At the session, she debated veteran investor Rob Arnott, who has been sceptical of high valuation growth stocks like Tesla.

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.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x