The EV industry fits her policy of investing in disruption and innovation growth stories, which is why she is a bull on electric vehicles. Wood predicted in a recent interview that EV sales would grow from 3.8 million units in 2021 to 40 million units in 2026.
Wood has several EV stocks, but the one that has stood out so far is the industry leader,Tesla. As of March 28, the stock of Wood's largest holding was Tesla, accounting for 7.54% of Ark Invest's family of exchange-traded funds.
Wood sold nearly 146,000 shares in the company on March 25. The last time Wood sold shares was in January.
Wood bought the EV stock Nio on the same day. A purchase transaction of over 400,000 shares of Nio was reported by The Ark.
The image is from the same source.
Wood's conviction on the stock has not lessened despite her trimming her position. The fact that she bought Nio stock for the first time deserves a lot more attention from investors as it shows that she believes in the Chinese EV stock.
Wood has an interest in the company. The company is hard to catch up to in the EV industry as it already has nearly a million cars out on the roads and its sales have grown rapidly in recent years.
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Wood doesn't want to miss out on any opportunity for EV companies other thanTesla. Nio is often referred to as the "Tesla of China" and has said that it wants to sell better products and cheaper.
Wood bought Nio stock just one day after the company released its fourth-quarter and full-year earnings. I believe it is the EV maker's growth plans.
In the first quarter, Nio expects to deliver 25,000-26,000 vehicles. That is roughly flat at the lower end of the guidance range, reflecting the severe supply constraints facing the company.
Nio has ruled out any plans to raise vehicle prices to pass on higher costs to consumers. The price of its EV was raised twice within a matter of days.
Nio is sticking with its plans to launch three electric vehicles this year. The company started deliveries of its flagship sedan, the ET7, on March 28. Nio plans to launch its first SUV, the ES7, in the coming weeks, as well as its first sedan, the ET5, later in the year.
As it expands its product portfolio, Nio's revenue should grow. Nio generated $5.6 billion in revenue and delivered over 91,000 vehicles. Europe is one of the world's largest EV markets and Nio is targeting it. Nio will enter at least four countries in Europe this year.
Statista is the image source.
Nio plans to create a mass-market brand to build affordable electric vehicles.
The growth potential for Nio is huge if it can deliver on its plans, as the company has its eyes set on two of the world's largest EV markets. Nio has a competitive advantage over its peers that could give it a lead during inflationary times.
Potential customers can save thousands of dollars by buying cars without batteries and instead paying a monthly subscription fee to swap and charge batteries on demand at Nio's swap stations. Nio had over 800 battery swap stations and over 700 supercharging stations in China as of March 20, according to CnEvPost.
The threat of having Chinese stocks delisted from the U.S. deepened when Nio listed its stock in Hong Kong in early March.
Nio said it could break even as early as the fourth quarter of 2023 and make its first full year of profit in 2024.
Nio is confident that it can scale up production profitably in an industry where it is hard to do. That seems to have caught the attention of Cathie Wood, and she bought the dip in this hot EV stock.
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool owns and recommends Nio. and Tesla. The Motley Fool has a disclosure policy. score=27.599999999999998>No one has a position in any of the stocks mentioned. The Fool recommends Nio. There is a disclosure policy for The Motley Fool.
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