The bigger picture for Tesla

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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

Nikko AM Australia is pleased to bring the ARK Investment Management strategies and capabilities to Australia. Click here to find out more

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.


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Patrick Fresne

Just an observation: I get the impression that the Australian financial media often spend more time analysing Tesla than all the listed Australian clean tech stocks put together. There are some very promising home-grown clean tech stocks that I think are certainly deserving of more attention than they are given by the local media.

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