Tesla Stock Makes Up Nearly 8% of Cathie Wood's Portfolio, and AI Is a Big Reason for That. Is It a Buy?
Cathie Wood's Ark Invest has made a name for itself with bold bets on high-growth stocks. Wood ignores short-term volatility in her exchange-traded funds (ETFs) and invests in companies based on their long-term potential.
It's no secret she is very bullish on (NASDAQ: TSLA). The stock currently makes up 7.9% of Ark's total holdings, its biggest position. That includes a 10.8% weighting in the Ark Innovation ETF.
According to Ark's latest research, published in April, Wood expects Tesla to reach $2,000 per share by 2027. That's based on a weighted probability of different outcomes for revenue, profitability, and the stock's expected valuation. But even in Ark's bear-case scenario, the firm believes the stock could be worth $1,400.
Source Fool.com