Yahoo Finance Cathie Wood on Tesla, crypto and more: Interview highlights
ARK Investments Founder, CEO, and Chief Investment Officer Cathie Wood is teaming up with 21shares to launch new crypto-focused ETFs. Wood joined Yahoo Finance's Julie Hyman to discuss the 21shares partnership, Tesla (TSLA), the Fed, inflation, bitcoin (BTC-USD), and more. Here are some of the highlights.
Tesla price cuts (00:00:03)
"All that Tesla's price cuts have done is offset the interest rate hit," Wood said. "So really the monthly payments haven't gone anywhere. Tesla will continue to cut prices because it can."
The Fed and inflation (00:00:35)
"I think they (the Fed) are in the process of making a mistake," Wood explained. "Now we're getting more prints again that are saying, the Fed probably has overdone it ... We have lots of callbacks with managements, and they're saying, why are you the only ones seeing recession? Why can't the Fed see this? This is what we're going through."
New crypto-focused ETFs (00:01:17)
"They were focused on the infrastructure, the regulations, really blazing a trail. They had to invent things in order to make this happen," Wood said. "We're just delighted to be partnering with them given how much groundwork they had to lay for this to happen."
Watch the full interview with ARK Invest's Cathie Wood on Yahoo Finance.
Video transcript
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CATHIE WOOD: GM and Ford pulling away, it tells us Tesla's market share in our five year investment time horizon is going to be higher than we thought. All that Tesla's price cuts have done is offset the interest rate hit. So really, the monthly payments haven't gone anywhere. Tesla will continue to cut prices because it can, its technology costs are falling and it's profitable.
The fed continuing to say, oh, no, no, no, no, we're higher for longer, and we absolutely will raise interest rates if we-- if we cannot see 2% inflation. So I think they're in the process of making a mistake. Now we're getting more prints again that are saying the fed probably has overdone it and just listen to quarterly company calls, and you'll listen to these management teams, and we have lots of call backs with management, and they say, why are you the only one seeing recession? Why can't the fed see this? This is what we're going through.
And I do think the fed is using lagging indicators for monetary policy, which is unfortunate. We've been working with 21 shares since I met Ophelia at an ETF confab in 2018. They were focused on the infrastructure, the regulations, really blazing a trail. They had to invent things in order to make this happen, and we've just been coming together for five years. It was a natural for us to come together. 21Shares is the largest crypto ETP provider in the world-- 1 and 1/2 billion dollars.
They have 35 different funds. We're just delighted to be partnering with them given how much groundwork they had to lay for this to happen.
