Ark More Convinced On Tesla's Autonomous Strategy And Cathie Wood Says A New Price Target Is Coming Soon

Ark Investment Management Founder and CEO Cathie Wood has been one of the most notable bulls on Tesla Inc TSLA over the years. She joined Benzinga's "Raz Report" Wednesday for an exclusive interview and shared her thoughts on Tesla.

Wood on Tesla: Wood highlighted Tesla's strong barriers to entry. The company has strong technology, a history of miles driven, over-the-air updates and battery technology, she said.

"Didn't think [the] company was going to run out of money," Wood said when discussing why she added more shares in 2018.

Wood has been very vocal about Tesla's future plans for autonomous driving and robotaxis: "Our conviction on its autonomous strategy has increased over last few months."

Related Link: Roku Will Take Lion’s Share Of Streaming TV Market, According To Cathie Wood

Tesla In Ark Funds: Tesla has been a strong performer for Ark Funds. The stock alone contributed a 320-basis point increase to the Ark Fund portfolio in 2019. Wood said the figure was even higher in 2020, but they're waiting on the exact number.

• Tesla is the largest position in the Ark Next Generation Internet ETF ARKW representing 9.3% of assets.
• Tesla makes up 10% of the flagship Ark ETF, the Ark Innovation ETF ARKK.
• The Ark Autonomous Technology and Robotics ETF ARKQ has 10.2% of the assets in Tesla shares.

Tesla Valuation: Wood said Ark’s conviction for autonomous cars has increased. The CEO said the fund management company is working on a new price target for Tesla.

See also: How to Invest in Tesla Stock

"Just finished our model," Wood said.

A new blog post will be issued soon from Ark Funds with the new price target: "Stay tuned," she teased.

Wood famously predicted shares of Tesla would hit $4,000. The target price was issued in 2018 and was hit on a split-adjusted basis in January 2021.

TSLA Price Action: Shares of Tesla closed down 5% to $653.20 on Wednesday.