ARK Invest founder Cathie Wood continues to back Elon Musk’s Tesla Inc. (NASDAQ:TSLA) and highlights Apple Inc.’s (NASDAQ:AAPL) woes.
Check out the current price of TSLA stock here.
What Happened: Wood has been backing Tesla since 2016. Currently, Tesla CEO Musk has been engaged in a war of words with President Donald Trump and recently announced the America Party, which has made Tesla investors worry.
However, Wood has brushed off the headlines, saying she's seen Musk weather storms before, as per a Bloomberg TV interview, via The Street.
"We've been dealing with controversy around Elon Musk in one form or another since we first bought the stock," Wood said to Bloomberg TV.
Wood remains steadfast in her belief in Tesla, undeterred by its recent struggles. She's sticking to her bold $2,600 price target for the next five years, pointing to the growth potential of Robotaxis and the Optimus humanoid robot as key drivers of Tesla's future.
Tesla accounts for approximately 8.5% of ARK’s portfolio, valued at over $840 million.
On the other hand, Wood has completely exited her position in Apple, citing the company’s slower growth and lack of significant disruption as reasons for the move.
During the interview, she also raised concerns about Apple’s AI strategy, pointing to the unexpected departure of Ruoming Pang, Apple’s top AI executive, to Meta Platforms Inc. (NASDAQ:META).
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Why It Matters: Wood’s latest statement follows her praise for Tesla as the “largest AI project on earth” and her declaration of Musk as the “most productive human being on earth.”
On Wednesday, it was reported that major investors in Tesla had urged the company's Board of Directors to hold the annual shareholders meeting as tensions escalated between Musk and Trump. The company’s board has set the meeting for Nov. 6th.
Meanwhile, Apple’s AI struggles have been a topic of discussion for some time. Despite poaching Google’s AI chief John Giannandrea in 2018, Apple has struggled to catch up in the AI race.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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