Tesla (NASDAQ:TSLA) has yet another influential ally in its corner: Ark Invest CEO Cathie Wood. Of course, the legendary investor has long been bullish on TSLA stock. In a recent interview, however, Wood specifically discussed why she expects the stock to continue climbing. Now, shares are up around 3% on the news, giving investors plenty of reason to be enthusiastic for the electric vehicle (EV) producer.
In the interview, Wood gave a ringing endorsement for TSLA stock, comparing the company’s innovations to those of Apple (NASDAQ:AAPL). As Wood sees it, Tesla will continue to “change the game” with its EV progress — just as Apple did with the iPhone.
Since the story broke this morning, TSLA stock has been rising steadily. Shares slipped earlier this week, but now the company may be back on track as it works to regain momentum.
What’s Happening with TSLA stock?
It’s not hard to see why an endorsement from Cathie Wood benefits any company. Her positions in names like Teladoc Health (TDOC) have helped boost shares before. TSLA stock is also already a pretty popular play among bullish investors. However, it certainly doesn’t hurt to see Wood touting its potential.
What’s more, Wood’s endorsement actually comes at a critical time for Tesla. The company recently provided updates on multiple new products, but recession fears are still growing stronger. On top of that, factory closures in China due to Covid-19 have sent Chinese auto sales plunging. These factors all make for a turbulent market landscape, compelling some investors to shy away from names like TSLA stock. As Wood calls Tesla a profitable bet, however, other investors are more likely to adapt the same mindset.
One key component of Wood’s bullish argument for TSLA centers around the company’s tech, which is years ahead of many competitors. While Wood did not name names, she did reference “traditional automakers” — a title typically applied to companies like Ford (NYSE:F) and Toyota (NYSE:TM). Both companies saw sales decline in the first quarter of 2022. Meanwhile, Tesla’s sales rose during the period.
What It Means
Even as recession fears grow, TSLA stock continues to prove that not much can keep it down. Now, Cathie Wood’s endorsement is exactly what the company needs to reassure investors of its potential. Tesla is still the undisputed leader of the EV race — and it has the tech to stay in first place. The recently opened Gigafactory Texas will also ensure the company keeps pace with demand.
Like Cathie Wood, InvestorPlace’s Louis Navellier also recently made a bullish case for Tesla. Investors would be wise to follow both of their examples before it rallies even further.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
