Ark Invest CEO Cathie Wood joins Yahoo Finance Live to discuss how Tesla will continue to dominate the EV space as well as other sectors.
BRIAN SOZZI: All right, third on our list is another bullish view on Tesla from noted investor Cathie Wood. Tesla has been seeing rising competition in the EV space from the likes of Ford, General Motors, Xpeng, Lucid, and Polestar. Should Elon Musk and his fans be worried? Our Julie Hyman is down in Florida where she caught off with Ark's Cathie Wood, a longtime Tesla bull. Wood told us why she is remaining optimistic on Tesla. Take a listen.
CATHIE WOOD: When it comes down to Tesla, the stock, the company and the stock, we pay a lot of attention to its barriers to entry. And as long as we see those moving up-- and they are moving up. Whether you're talking about battery technology, it's going to take a long time to catch Tesla. And what I mean by that is the traditional automakers. It's the only company with an A-- that has designed its own AI chip for autonomous driving. Taking a leaf from Apple's book, Apple was the only company to design a chip for a smartphone, a computer in our pockets, our pocketbooks, and changed the game.
BRIAN SOZZI: So, really, Emily, the competition in the EV space, the EV, there's so much interest in EVs. We see it every day here on the Yahoo Finance platform. So many folks interested in tickers like NIO and Xpeng. The competition is coming. It's surprising to hear Wood not a little bit more worried about this.
EMILY MCCORMICK: Absolutely, and we should point out-- and as many of our viewers know-- Cathie Wood and the Ark Innovation funds and ARK Invest have really been long-time bulls here on Tesla. And they've really continuously drilled down this notion that Tesla does have this wide moat around it, as Cathie Wood was mentioning those barriers to entry. And I do think that analogy to Apple is an interesting one, the fact that like Apple with its own chips now, Tesla is the only company with an AI that has its own AI chip for autonomous driving.
What's also interesting, too, is autonomous driving isn't necessarily one of the big things for Tesla. Right now, of course, it's just an EV maker that is continuously building out this full self-driving feature. So I think it is going to be interesting in the next couple of years, next couple of decades, to see how autonomy plays out in Tesla's moat as well and for a number of these other companies that have been working on this space, too, Brian.
BRIAN SOZZI: Well, either way you slice it, Tesla is in a better position today right now than Bed, Bath & Beyond. We should also note Wood also spoke to Julie about why she decided to pull out of Twitter. And we'll have much more of that interview coming up in the 10 o'clock hour. So be sure to stick around.