ARKK - ARKK Is Wrong About Tesla And The Rest Of Their Portfolio
2024-06-25 13:45:59 ET
Summary
- ARKK's largest investment is Tesla and the fund has published a lofty price target for the company, one we feel isn't grounded in reality.
- Forecasts for Tesla's future, particularly in the RoboTaxi business, have been wrong in the past, and we expect that to remain the case.
- Tesla's declining market position, facing increased competition and slowing sales, leads to the recommendation to short ARK Innovation ETF and Tesla due to overvaluation.
ARK Innovation ETF ( ARKK ) rose to fame in 2020 as its investments in high-flying technology companies road a wave of market bullishness. Its largest investment is Tesla, Inc. ( TSLA ), the largest (by market cap) publicly traded auto company in the world, with a market capitalization of more than $550 billion. As we'll see throughout this article, ARKK has published a $2600/share forecast , which is not only historically inaccurate, but we expect to be wrong going forward....
ARKK Is Wrong About Tesla, And The Rest Of Their Portfolio