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Tesla (TSLA) has had a rocky road in 2023 with recalls, product delays, and headline making leadership in Elon Musk. Ark Invest CEO Cathie Wood recently increased her investment in Tesla and spoke with Elon Musk on X Spaces. Wood joined Yahoo Finance to discuss her conversation as well as why she believes Tesla is still in position to be the leader in the EV space. Wood says that General Motors (GM) and Ford (F) delaying some of their EV investments was a "telltale" sign for Tesla's potential share gains. Longer term, Wood says Tesla is "in the pole position to be the autonomous taxi platform in the United States."
Click here to watch the full interview with Ark Invest’s Cathie Wood or check out why she hopes companies like SpaceX and Anthropic go public here.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
JULIE HYMAN: But I did want to start with Tesla here because you did have the chance to talk to Elon Musk last week and because you did recently add those Tesla shares back in, although you didn't not have them. You just added more shares to the portfolio. Talk to me about the timing of that, first of all, of getting back out there and buying Tesla shares.
CATHIE WOOD: Yeah. A couple of things have happened in the last month really that have increased our confidence in Tesla. It's already high. It's the number two position in the flagship fund. But when we saw GM and Ford really pulling away from EVs until they become profitable, that was telltale for us in terms share gains available to Tesla.
What's puzzling is that GM and Ford are not going to be profitable with electric unless they scale. And so it's a bit of a puzzling decision. And the other thing, of course, GM has basically shut down Cruise, partly for regulatory reasons, partly out of an abundance of caution on the autonomous side. And they're losing a lot of talent because of it. And again, we do believe that Tesla is in the pole position to be the autonomous taxi platform in the United States. Cruise pulling out adds to our confidence there as well.