Ark Invest founder and CEO, Cathie Wood.
Brendan McDermid.
During the early days of the electric vehicle maker, Ark Invest founder Cathie Wood was bullish on the company. What about Rivian and Lucid?
Not quite.
Wood told CNBC that she will only buy into the two firms if they produce self-driving cars.
She said that if we saw Rivian getting into the world of self-actualization, it would be more interesting.
Wood said that the most sure way electric vehicles can be commoditized is by virtue of their inherent qualities. She said that taxi fleets in the future will likely be self-driving.
Her bullishness on the stock is due to her expectation that the EV maker will eventually use artificial intelligence to develop robotaxis.
She told CNBC Wednesday that all they need is a taxi to get them from point A to point B. We don't need a finished product.
Wood still admires what Rivian and Lucid are doing with their electric vehicles.
The luxury EV maker went public in July and has a market cap of $80 billion, but its executives acknowledged in November that they still have a ways to go. Rivian, which produced its first electric trucks in September, has a market cap of $94 billion.
Wood shot to prominence in 2020 thanks to her blockbuster performance driven by bets into mega-growth stocks. Her flagship fund increased more than 150% in 2020.
She made headlines earlier this year when she predicted that the stock of the company will hit $3,000 by the year 2025. Wood said in September that she would sell her holdings if they reach that level.
The star stock-picker has already made it a habit to sell smaller amounts ofTesla stock when it has done well for a certain period or has grown too much in her portfolio. She once described this selling asportfolio management.
As of Thursday noon, the stock was not moving. The shares have rallied around 50% so far this year and are now worth $1 trillion.
Business Insider has an original article.
