There’s a brand new star within the investing house, and her identify is Cathie Wood. The founding father of the ARK Invest household of actively managed exchange-traded funds has revolutionized the trade, eschewing passive index monitoring in favor of excellent old school inventory selecting. All 5 of Wood’s ETFs have greater than doubled over the previous yr, and all 5 characteristic numerous portfolios with a number of dozen shares amongst their holdings.
However, there’s one inventory that Wood has praised greater than some other. It’s been an integral a part of her ETFs’ holdings over the previous yr, and its efficiency has been essential to the success of ARK Invest. Below, we’ll share what Wood has stated about this firm and whether or not she thinks it nonetheless has good development prospects for the longer term.
The solely bull in a room stuffed with bears
After a inventory has soared, it is simple to be bullish. But Wood was enthusiastic about her favourite inventory lengthy earlier than it was red-hot — and even when many believed it was on the snapping point.
Image supply: Getty Images.

To get some context, look again to August 2019. The share value of Wood’s favourite had fallen by a 3rd because the starting of the yr. Many had been skeptical of its capability to bounce again from considered one of many controversies surrounding the corporate and its CEO. The firm even lower costs on its important product line, and a few even feared {that a} chapter submitting could possibly be imminent.
The inventory, in fact, is Tesla (NASDAQ:TSLA), and nothing occurring with the corporate 1 1/2 years in the past deterred Wood from her bullish views. “We assume the adverse sentiment is fairly unbelievable,” she stated in a CNBC interview. Wood noticed gross margins for the corporate’s merchandise rising over time and pointed to the ancillary potential of autonomous-vehicle expertise as an enormous tech asset on which nobody on the time was placing a lot worth.
In phrases of competitors, Wood famous, Tesla was constructing its personal aggressive benefit by constructing the go-to place of employment for these thinking about innovation. “It’s getting all of the actually nice software program engineers,” she advised CityWireUSA. “Tesla is taking all of the oxygen out of the room for the opposite automakers.”
It was lengthy earlier than that, in early 2018, when Wood put a seemingly outlandish $4,000 per-share value goal on the inventory. By early 2020, she had upped that decision to $15,000 per share, with a timeframe of 2024.
Despite all her critics, Wood was proper. Her bullish calls had been made earlier than Tesla did its 5-for-1 cut up, so the previous $4,000 and $15,000 value targets work out to $800 and $3,000, respectively, post-split. Tesla hit $800 per share earlier this yr and stays close to that stage. That’s taken $10,000 invested this time final yr at a stage nearer to a split-adjusted $160 per share and turned it into almost $50,000.

TSLA information by YCharts.
As for Tesla reaching $3,000 per share, which may take a number of extra years. But Wood hasn’t retracted that decision and continues to be including to what’s already an in depth place in Tesla in her ARK Invest ETFs.
Big bets on Tesla
You will not discover a inventory amongst ARK Invest’s ETFs that has more cash invested in it than Tesla. The following ETFs have positions:
The flagship ARK Innovation ETF (NYSEMKT:ARKK) is ARK Invest’s greatest energetic ETF and holds 3.1 million shares value almost $2.48 billion at latest costs. Tesla makes up nearly 9% of the fund’s whole belongings.
ARK Autonomous Technology & Robotics ETF (NYSEMKT:ARKQ) is far smaller however has an excellent larger focus in Tesla inventory. The fund holds about 511,000 shares valued at greater than $400 million, making up just below 10% of the ETF’s belongings.
Another 1 million shares of Tesla are within the palms of ARK Next Generation Internet ETF (NYSEMKT:ARKW). Those shares have a price of simply shy of $800 million, representing 8.5% of belongings beneath administration.
At least for now, Wood hasn’t discovered any technique to embody Tesla within the holdings of ARK Invest’s genomics or fintech ETFs. However, with the Elon Musk-led firm, you by no means know what could possibly be in retailer.
Buying extra Tesla
Despite these massive positions, Wood stays bullish on Tesla. Just this week, she stated that ARK Invest has been shopping for shares. Wood pointed to the potential worth of ride-hailing as yet one more marketplace for Tesla to faucet into.
Tesla continues to encourage each bullish and bearish calls throughout the funding neighborhood. But two issues are sure: Wood’s perception within the EV pioneer hasn’t wavered, and up to now, her calls about her favourite inventory have panned out extraordinarily nicely for ARK Invest’s shareholders.