Tesla Bull Cathie Wood's ARK Says EVs Could Capture Much Higher Market Share

In its weekly newsletter, Cathie Wood’s ARK Investment Management has argued that electric vehicles are likely to capture a much higher share of the market than the fund forecast earlier. 

Instead of 48 million units, EV sales would scale eight-fold from 8-9 million units this year to roughly 67 million in 2027, said Sam Korus, Director of Research, Autonomous Technology & Robotics at ARK.

However, ARK has also stated that several forces could derail this forecast. 

“Perhaps because of materials shortages or technology issues, EV production will not be able to scale that quickly. Perhaps a severe decline in used car prices will pose more of a competitive threat than we anticipate,” Korus wrote.

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The fund also highlighted that according to Wright’s Law and ARK’s adoption model, as the cost to produce 300-mile range EVs continues to decline, their market share will approach about 67%, or 48 million units, in 2027.

Wood has been a big believer in Tesla Inc TSLA which was a top contributor to ARK Innovation ETF's ARKK and ARK Next Generation Internet ETF's ARKW third-quarter performance. The EV-maker is the second largest holding of the company’s flagship fund.

On October 20, Wood had bought over 66,000 shares of Tesla at an estimated valuation of over $13 million.

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