If you do not know about Cathie Wood, you should. With her Ark Investment Management fund, she became a long-term Tesla bull when many professional investors were doubtful about the wisdom of Tesla as an investment. According to Bloomberg, Wood made Tesla her fifth-largest holding in 2014 soon after Ark launched. In 2018 Tesla became the fund’s top holding as most others were wary of EV-makers, particularly Tesla. In early 2020 when Wood predicted a 2024 Tesla price target of $7,000, many thought this was a crazy projection (The $7,000 price target was established before Tesla’s five-for-one stock split on August 31, 2020. The $7,000 price target is the equivalent of a $1,400 stock price post-split). Some of Wood’s logic about her Tesla investments are what persuaded me to invest in Tesla shares in late 2018, and add to that position in early 2019.
Our confidence in Tesla has grown as we've done research on what ride-sharing potentially could add. - Cathie Wood on CNBC, 2/17/21
During a CNBC interview last week, Wood discussed her continued bullishness on Tesla based on the potential for a more profitable business extention centered around an autonomous driving ride sharing service. She stated that as the probability of the company developing self-driving capability increases, Ark also will increase the price target of Tesla as well.
My own research on what I call autonomous transportation-as-a-service (TaaS) suggests this could be a $10 trillion global market opportunity. However, I disagree with Wood and many Tesla investors who believe that winning in the TaaS world will be a zero-sum game with Tesla winning and all others losing. Profits from new technological advancements attacking large market opportunities are never a zero-sum outcome as many suggest will be the case for Tesla. For example, Microsoft has a very profitable cloud business competing in a cloud market essentially created by Amazon. TaaS will be no different. There will be multiple winners even if Tesla also profits.
My belief in a win-win TaaS profit environment makes up the basis of the taGMan portfolio of companies. Each of these companies are primed to profit substantially in a future TaaS world.
Tesla
Apple
Google (Alphabet’s Waymo subsidiary)
Microsoft
Amazon
Nvidia
General Motors (the capital GM in taGMan)
Disclaimer
TaaSMaster, LLC is not a registered investment advisor or broker/dealer. All investment opinions expressed by TaaSMaster, LLC are from personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur.