The bigger picture for Tesla

Tesla shares have bounced back toward all-time highs to put them up 17-fold over eight years. While debate rages over the balance sheet and the delivery of the Model 3, Catherine Wood, CEO and CIO at ARK Investment Management (ARK), calls these a “this year issue”, and sees a significantly bigger opportunity ahead. 

Key points

• Discussions centred on production ramp up may be short sighted. Cash burn issues are a ‘This year issue’.
• The far bigger picture over the next 5-10 years for Tesla is the opportunity to positioning itself as a global leader in autonomous taxi networks and truck platoons. 
• Autonomous taxi networks, where the car is electric and driverless, will see the cost to travel a mile fall by 90% compared to a traditional cab. 

Further insights

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ARK Investment Management is a Nikko Asset Management strategic partner. This material is issued in Australia by Nikko AM Limited ABN 99 003 376 252, AFSL 237563.