Tesla Inc (NASDAQ: TSLA) bull Cathie Wood seems to have had a change of heart about General Motors Co (NYSE: GM) after months of dissing the legacy automaker and its stock.
What Happened: The popular stock picker, who runs Ark Investment Management, said on Wednesday in an interview with Yahoo Finance that she has an “open mind” on GM.
“When we see success, we have to acknowledge it. We have to learn a lot more about it and are still on a fact-finding mission,” Wood said when asked if she plans to invest in the legacy automaker.
Late To The EV Party: Wood, who has placed heavy bets on Tesla and is piling up shares in its peers such as China-based Xpeng Inc (NYSE: XPEV), BYD Co (OTC:BYDD), and Nio Inc (NYSE: NIO), currently does not own any shares in GM or its rival Ford Motor Co (NYSE: F).
The 66-year-old investor, who manages assets worth $50 billion, said in November that legacy automakers didn't have the genes to make it big in the electric vehicle universe.
She had then said GM and Ford's setting aside billions to transition from traditional gas-powered engines to EVs may be "too little and too late" for them.
In January, Wood said GM and Ford do not have a lot of room for errors given their low gross margins and that she won't be buying shares in the two companies as the recent surge in their stock was due to their EV-related announcements.
Why The U-Turn?: Wood revealed she’s spent a day with GM CEO Mary Barra and was impressed with how she is “really turning that ship around and is focused on Cruise automation.”
“Cruise automation is in San Francisco and it is a complicated city and they are making it work. Waymo has done the same but in a less crowded situation in Arizona. I am impressed with Cruise and we are taking a closer look at that,” Wood said in the interview.
The stock picker said Ark's confidence in Tesla continues to be the “highest” when it comes to autonomous driving.
Price Action: GM stock closed 0.47% higher at $40.2 a share on Wednesday.
Photo courtesy: Ark Investment
