Tesla Shares May Sell Higher than $4,000 According to Fund Manager Cathie Wood

Tesla is one of the fastest growing tech companies in the world. Even if the company faced some challenges last year, industry insiders are certain that the future of Tesla is bright. Catherine Wood, the CEO of Ark Invest initially said that Tesla’s shares would sell as high as $4000. On Monday, speaking at CNBC’s ETF Edge, she said that her conviction in Tesla has increased significantly over the last year and she believes the shares would sell higher than $4000. In her words: “Tesla is occupying our largest position and our conviction in the company has risen over the last year. It is down by up to 29% this year but our funds are up by about 28%.”

According to Wood, Ark invest is able to make the best out of difficult situations by implementing a unique method that places emphasis on innovation as the key to growth. Many of the ETFs that are being managed by Ark is outperforming the wider market this year. This is how the company makes money even if it’s largest stock is from Tesla. She continued: “When genomics stocks took a hit last year, we leaned into them heavily and this allowed us to offset the declines from Tesla stock. Apart from Tesla, Invitae, our second largest position, is one of the most molecular diagnostics companies in the United States and the stocks were up by 125%. Last year, the stock sold as low as $5 and this year it is trading as high as $18. Holding on paid off for us.”

Right now, Ark is doing the same thing with Tesla. It has a strong conviction in Tesla’s stock and it has held this conviction even when the company had to go through the fear of financial crisis.

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