On the morning of March 8th, Cathie Wood, CEO of ARK Invest, known as the “female version of Buffett”, expressed her positive outlook on ARK Invest’s disruptive innovation investment theme and her confidence in Tesla in an interview with Bloomberg Technology channel.
On the day of the interview, Tesla’s stock price hit its recent low of below $600. However, Cathie Wood, the internet celebrity fund manager also known as “Wood Sister”, put forward two reasons why she and her fund (NYSE: ARKK) are bullish on Tesla.
-
Tesla has not lost market share due to traditional luxury brands entering the electric vehicle market. ARK analysts had previously predicted that Tesla’s market share in the electric vehicle market would fall from 18% at the end of 2018 to 11% as more electric vehicle models entered the market. On the contrary, Tesla’s current market share is 20%, and this data in the U.S. is 80%. This undoubtedly gives the first confidence to investors.
-
The demand for autonomous driving is real. When Musk solicited FSD Beta testers on Twitter last weekend and said that subsequent spots would be opened up, the network’s response showed great interest in autonomous driving. Musk’s move shows that Tesla can bring autonomous driving to the market faster, and this speed may be faster than analysts and investors imagine. Therefore, ARK has also raised its expected success rate for Tesla’s entry into the U.S. autonomous driving taxi market.
Stock prices reflect future value, and this expectation comes from investors’ sufficient confidence. The source of ARK’s confidence comes from the recognition of Tesla’s autonomous driving solution. Tesla’s visual solution has lower perception accuracy. Although the road to full autonomous driving will be more difficult, Tesla’s solution is more replicable than laser radar + high-precision map solutions led by Waymo and V2X solutions represented by Apollo in terms of replicability. And Tesla’s progress in visual solutions can be said to be in a leading position.
🔗Source: Ark Invest, YouTube
🔗 Source: Ark Invest, YouTube
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.