• Cathie Wood is ‘more bullish than ever’ on Tesla
• Cathie Wood sells approximately $26 million worth of Tesla stock
• Coinbase and block investments are increased
Cathie Wood’s declaration of love to Tesla
Star investor Cathie Wood announced her unshakeable belief in January Elon Musk and the company around the billionaire – Tesla. As she explained in a webinar, according to Wall Street Online, Wood believes that Tesla’s price will increase fivefold over the next five years. That would make Tesla stock worth about $645 in 2028. The US company’s share price is currently around $207.46 (closing price on March 31, 2023). “We’re more optimistic about Tesla than we’ve ever been,” Wood said. Reasons for their statement is the constantly growing market for electric vehicles. According to her, 60 million electric cars will be sold worldwide within the next five years, i.e. around twelve million cars per year. In 2021, electric manufacturers sold around 6.7 million electric vehicles worldwide.
In addition, Tesla Wood will prove to be extremely competitive. “Tesla will be very aggressive on pricing,” Wood said in the webinar. A circumstance that the electric car manufacturer can also afford. “Tesla has the lowest cost structure and is innovative,” she continued. Therefore, other manufacturers would have to follow the price pressure, “but it will hurt them quite significantly from a profitability point of view,” explains the investor.
That’s why Woods throws Tesla shares out of the portfolio
However, as the Investors platform now reports, Wood sold a significant amount of Tesla shares for two days in a row in the penultimate week of March. In total, investors sold 139,642 shares of the electric vehicle giant, valued at approximately $26.84 million. And that, although things are not bad for Tesla at the moment. Year-to-date, the company’s share price has risen by around 68 percent (as of 03/31/2023) and it seems that the turmoil surrounding Elon Musk is now receding into the background. The latest figures from Chinese banks also indicate that Tesla’s discount campaigns in China were crowned with success, according to Börse-Online. So why the sale of Tesla securities? According to Börse Online, some experts assume that Wood used the rise to throw the shares out of the portfolios before the important quarterly figures on April 18, because these could lead to a sell-off, especially if the outlook is disappointing.
Cathie Wood buys Coinbase and Block shares
But the depot changes do not stop with the Tesla sales. As Coindesk reports, Wood is also topping up her fund with Coinbase and Block stocks at the same time. After Block crashed following a report by investment research firm Hindenburg Research, the fund manager purchased $18.1 million in Coinbase stock and $12.6 million in Coinbase stock. Both stocks had fallen by double digits in the same week on negative news.
However, the crypto market is not unfamiliar territory for Wood. The fund manager recently set up a new crypto fund. For this she collected a total of 16 million US dollars. In addition, Wood recently increased her Coinbase investment when she added another 119,429 shares of the world’s largest crypto exchange to her fund.
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Image credits: Cindy Ord/Getty Images for Bloomberg Businessweek