Cathie Wood of Ark Invest has revealed if she were to hold a stock for ten years, it would be Tesla. The top-shot investment manager gave her reasons in an interview on Twitter spaces this week.
Cathie Wood says if she was given $1M and was forced to pick one stock and hold it for 10 years, it would be $TSLA. She believes the stock can reach $1,500 within the next 5 years. pic.twitter.com/CIPXEEvA2P
— Sawyer Merritt (@SawyerMerritt) February 2, 2023
While some people rush to sell their Tesla stock holding following a series of declines, Cathie Wood has been stocking up on the EV maker’s shares. It is now the largest holding in her firm’s impressive investment portfolio. The CEO snapped up $47 million worth of the shares in just one week in January.
Tesla shares plummeted 65% in 2022 due to inflation, rising interest rates, and the negative impact of Elon Musk’s protracted take-over of Twitter on Tesla’s brand. But that was not enough to shake Wood’s confidence, who has long supported Tesla.
Wood points out that Tesla stocks will experience a turnaround after cutting prices in the US, Canada, China, and Europe, making its cars even more competitive. She also believes Tesla will become a leader in yet another market; delivery robots. Wood expects the market to expand to one trillion dollars in the next ten years.
Wood anticipates Tesla stock rising to $1,500 within the next five years, a staggering increase of 675%. That, however, was a revision of her earlier position that the price could reach $4,600 by 2026.