Cathie Wood, Elon Musk Cindy Ord and Picture Alliance
According to a Bloomberg report, Cathie Wood supported Tesla shares after a recent selloff.
Tesla stock prices plummeted following Elon Musk's tweet poll asking whether he should sell shares of the electric vehicle maker.
Wood said that the slide was "nothing but a blip" and that Tesla had a price target of $3,000 in 2025.
According to a Bloomberg report, Cathie Wood, a star stockpicker, remained a supporter of Tesla stock despite the recent rout of the EV maker.
Tesla stock prices fell 20% Wednesday, compared to Friday's session. This was the day that Elon Musk conducted a Twitter poll asking his followers if they should sell 10% of their shares in the electric car maker. The majority of poll respondents favored a sale.
Although Tesla stock has seen some improvement, the price of the stock dropped by more than $200 billion. On Thursday, shares were up 0.6% to $1,073.
Wood said Wednesday that the momentum players became tails as soon as the stock responded to the news and followed it down," Wood stated to Bloomberg at the Dynasty Financial Partners 2021 Investments Forum in Nashville, Tennessee. "We have been taking profits up, and we've received a lot criticism for it. This is nothing but a blip for us."
Wood's Ark Invest, which set a price target for Tesla stock at $3,000 in 2025, announced that it expected sales of 5-10 million Tesla vehicles by 2025. Also, the launch of a fully autonomous robotaxi fleet.
Wood's Ark Innovation ETF or ARKK has the largest holding of Tesla, which had a 10.5% weighting in November 10. The fund sold shares of Tesla three times in a row last week, from November 4 to November 4. This was before Musk posted his Twitter poll.
Ark Invest's Tesla holdings Ark Invest
According to the Bloomberg report, Wood said that Musk, who is facing a large tax bill for stock options, might have felt obligated to conduct the public poll.
Wood stated that he has said publicly that he was the first to enter and will be the last to leave. He still has a huge tax bill for stock options. He didn't want any more stock to secure loans. That seems sensible to me.
Musk exercised 2.15 Million stock options Monday at $6.24 per share, for a total of $13.4 billion. Musk then sold 934,000 shares at different prices and generated more than $1.1 million from the sales.