Ark Ventures founder Cathy Wood said Tuesday that there are two self-driving companies that could become Tesla’s biggest rivals, Google’s Waymo and GM’s Cruise. But she also said the two companies are still far behind Tesla, which she believes is at least three years ahead of all rivals.
Wood answered questions from retail investors on a forum on the trading app Public on Tuesday. She was asked who she thought was Tesla’s biggest competitor. We think Cruise and Waymo have demonstrated state-of-the-art self-driving technology on public roads, Wood replied.
But she added that both companies have fewer vehicles in their fleets to collect data and that Tesla has a key data advantage. Wood, one of Tesla’s biggest bulls, last year predicted the stock would hit $3,000 by 2025. Tesla remains the largest holding in her three main funds, despite the fact that she has continued to reduce her holdings since September when the stock was at a high above $1,000.
On Thursday, Wood’s fund bought 33,482 Tesla shares, ending months of underweight and cashing out. Tesla shares fell 11.55% on the day to $829.10. From an electric vehicle perspective, we think Tesla is at least three years ahead of all of its competitors in energy, Wood said at the forum on Tuesday.
Tesla remains Ark’s top conviction stock, she said, adding that any underweight in our portfolio is related to broader portfolio management rather than a loss of confidence. Cathy Wood’s Ark Investments further increased its stake in Tesla on Monday, buying 42,124 shares worth about $39.45 million at the day’s closing price.
This is the company’s second purchase of Tesla stock this year. On Thursday, Ark bought 33,482 Tesla shares, ending months of cash reductions since last September. Tesla shares rose 10.68% to close at $936.70 on Monday but fell 5.47% to close at $931.25 on Tuesday.
Wood’s Ark Innovations ETF and Ark Next Generation Internet ETF bought Tesla shares on Monday. Another fund, the Ark Automation Technology and Robotics ETF, also holds a significant amount of Tesla stock. The three ETFs collectively held about 1.55 million shares of Tesla after trading on Monday.
In addition, Ark Investments bought 55,178 shares of Xpeng Motors on Monday, valued at about $1.9 million. This is also the fund’s second purchase of Xpeng shares this year. Ark Investment Co., which first bought shares in Xpeng Motors on December 3, currently holds a total of 629,269 shares worth about $22.9 million.