The EV revolution is (nearly) upon us, according to Ark Invest guru Cathie Wood.
High lithium prices over the past two years is a strong signal that a ramp in production is needed, according to the fund manager.
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Miners will need to invest about $30 billion in capital expenditures in order to meet the demand that will grow strongly over the next decade.
Her bullish view on lithium is tied to her bullish view on electric vehicles and Ark's bet on the industry, specifically, Tesla (TSLA).
Ark's View on Tesla
Cathie Wood recently predicted that shares of the electric vehicle titan will reach $1,500 to $1,600 by 2028. That’s almost eight times the recent price of $210.
And what makes Wood so enthusiastic? “Tesla is one of the most profound AI [artificial intelligence] companies out there,” she told Maria Bartiromo on Fox Business.
That’s why the stock is one of the biggest holdings in several Ark exchange-traded funds, Wood said. “It’s not an auto company, it’s a technology company.”
She’s particularly enthusiastic about Tesla’s autonomous taxi effort.
“That’s the biggest opportunity in the next five to 10 years around AI,” Wood said. “Autonomous taxi platforms, and Tesla is in the pole position, will have [profit] margins in the 80% range.”
