Cathie Wood Defends Tesla's Valuation Despite 40% Stock Plunge

Cathie Wood Stands By Tesla's $2,600 Price Target Despite 40% Stock Drop, Calls It 'Winner-Take-All'

Benzinga - March 14, 2023

Cathie Wood, the CEO and founder of ARK Investment Management, is sticking by her $2,600 price target for Tesla Inc (NASDAQ: TSLA), despite the electric vehicle maker's stock dropping by nearly 40% over the past few months.

In an interview with CNBC, Wood reiterated her bullish stance on Tesla, saying that the company is a "winner-take-most" player in the electric vehicle market. She believes that Tesla's dominance in the market, combined with its strong brand and innovative products, will allow it to continue to outperform its competitors and drive long-term growth.

"We're not backing off our $2,600 price target," Wood said. "We think Tesla is a winner-take-most player in the electric vehicle market, and we think it's going to be a very strong performer over the long term."

Wood's comments come as Tesla's stock has been under pressure in recent weeks, due in part to concerns about the company's ability to meet its production targets and the impact of rising interest rates on its business. However, Wood believes that these concerns are overblown, and that Tesla's strong fundamentals will ultimately drive the stock higher.

"We think Tesla is a very strong company with a very strong brand, and we think it's going to continue to do well over the long term," Wood said. "We're not concerned about the short-term volatility, and we're sticking by our price target."

Wood's ARK Investment Management is one of the largest institutional investors in Tesla, with a stake of over 2% in the company. The firm's flagship ARK Innovation ETF (ARKK) also has a significant exposure to Tesla, making it one of the top holdings in the fund.