Ark's Wood Remains Bullish On Tesla As U.S. Recession Fears Rise

Star stock picker Cathie Wood of Ark Invest remained bullish on top holding Tesla Inc. despite growing fears of a U.S. recession and shutdowns of the car maker's Shanghai factory due to spiking coronavirus cases.
Calendar-icon

By car&bike Team

clock-icon

1 mins read

Calendar-icon

Published on April 17, 2022

Follow us on

google-news-icon
Story

Highlights

    Star stock picker Cathie Wood of Ark Invest remained bullish on top holding Tesla Inc on Tuesday despite growing fears of a U.S. recession and shutdowns of the car maker's Shanghai factory due to spiking coronavirus cases.

    "What we said during COVID about innovation solving problems will move into overdrive," she told a webinar, with Tesla poised to "deliver truly exponential growth for many, many years" as it expands its autonomous driving programs.

    Wood's bullish stance on technology comes as yields of two-year Treasuries have moved above those of 10-year Treasuries in recent weeks, which is often considered a precursor to a recession.

    Wood, whose ARK Innovation ETF was the top-performing U.S. equity fund in 2020, said that she expects "truly disruptive innovation" will come back into favor as investors turn to technology to solve economic problems.

    Tesla is down 6% for the year to date, while Wood's second-largest position, Teladoc Health Inc, is down nearly 26% over the same time.

    Overall, ARK Innovation is down 36.7% for the year to date, a performance that puts it in the worst percentile among the 615 U.S. Mid-Cap Growth funds tracked by Morningstar. Shares of the fund rose 0.5% in afternoon trading Tuesday.

    Investors have pulled approximately a net $791 billion out of the fund over last three weeks, according to Lipper data.

    That three-week losing streak was its longest since November.

    (Reporting by David Randall; Editing by Cynthia Osterman)

    (This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

    Stay updated with automotive news and reviews right at your fingertips through carandbike.com's Google News

    Related Articles

    Latest News