Cathie Wood Backs Musk's Tesla Focus Amid Market Volatility

In the aftermath of Tesla's recent decline, Cathie Wood, a prominent investor known as "Woodhead," has reaffirmed her support for Tesla CEO Elon Musk. Wood, the founder of Ark Invest, highlighted that Musk's decision to take over the sales operations in the Americas and Europe is a positive sign, indicating his renewed focus on the company's core operations. This move is seen as a strategic shift away from Musk's previous involvement in political affairs, particularly his engagement with the White House.

Wood's continued backing of Musk underscores her confidence in Tesla's long-term prospects, particularly in the realm of autonomous driving and ride-sharing services. She has been a long-term advocate for Tesla, with the company being a core holding in several of Ark Invest's funds since 2014. Wood's optimism is rooted in her belief that Musk's hands-on approach to managing critical aspects of the business will drive success.

In a recent interview, Wood emphasized that Musk's decision to personally oversee the sales operations in key regions is a significant step. She noted, "Musk recently announced that he would personally handle the sales work in the Americas and Europe. As long as he is focused and personally involved, things generally get done." This statement reflects Wood's belief that Musk's direct involvement in these critical areas will lead to better outcomes for the company.

Wood also commented on Musk's previous political engagements, suggesting that his current focus on Tesla's operations is a positive development. She remarked, "I think he is now more focused than before, at least more so than when he was 'full-time at the White House.'" This comment highlights Wood's view that Musk's reduced political involvement allows him to concentrate more on Tesla's business, which is beneficial for the company's growth.

As one of Tesla's most vocal supporters, Wood has previously predicted that Tesla's stock price could reach 2,600 dollars within five years, nearly nine times its current value. This prediction is based on her belief that the company's core value will come from its autonomous driving and ride-sharing services, which she estimates could account for 90% of the company's overall valuation. Wood has also invested in other companies founded by Musk, including SpaceX, Neuralink, and xAI.

Despite the recent market volatility, Wood remains steadfast in her support for Tesla. She acknowledged the various controversies surrounding Musk but emphasized her trust in Tesla's board of directors and their judgment. "We have faced various controversies about Musk since we first bought Tesla," she said. "We trust Tesla's board and their judgment, and we will not get involved in politics."

Wood's comments come at a time when Tesla's stock price has experienced significant fluctuations. The company's market value has seen substantial losses, and Musk's recent announcement of forming a new political party, "American Party," has added to the uncertainty. This move has raised concerns among some investors, who are wary of Musk's continued involvement in political affairs.

In addition to her comments on Tesla, Wood also shared her thoughts on Apple. She noted that the company's recent loss of a key AI model executive to Meta is a significant setback. "If you think about the 'ultimate mobile device,' it is the autonomous car, and that should have been a market that Apple could have captured," she said. "We believe this will be one of the largest AI projects on Earth." Wood suggested that Apple's loss of key talent could put the company in a precarious position, emphasizing the need for tangible results.

Wood also commented on Meta's CEO Mark Zuckerberg's focus on AI, noting that his current strategy could either lead to success or failure, much like his previous bet on the metaverse. She expressed interest in observing whether Zuckerberg's open-source AI strategy can translate into a leadership position in the AI field.