Jim Cramer took a jab at Ark Invest’s Cathie Wood’s “bold” declaration that 80% of vehicles on the roads will be electric within “a few years.”
Analysis of Events: Cramer criticized Wood’s assertion following a substantial sales miss by Tesla Inc. TSLA in the first quarter of 2024.
In response to this statement, Cramer expressed his skepticism, calling the prediction “painful.”
The Mad Money host’s comments came after the Elon Musk-led electric vehicle (EV) giant reported a significant sales decline in the first quarter of 2023, with both production and deliveries down compared to the previous year and quarter.
Despite concerns from analysts regarding Tesla’s sales performance, Wood reaffirmed her confidence in the EV manufacturer by investing an additional $39 million in the company’s stock.
However, Cramer disparaged Wood’s optimism, suggesting that the road ahead might be fraught with challenges.
Wood had previously stated in February that the EV industry would continue to expand over the coming years.
In Ark Invest’s annual “Big Ideas” report, Wood highlighted the potential for exponential growth in EV sales due to decreasing battery costs.
According to Wood’s projections, EV sales could escalate to 74 million units by 2030, a considerable leap from 10 million in 2023.
“As battery costs drop, EV prices are expected to decrease, potentially leading to a surge in unit sales,” the report explained.
For further insights: Tesla Catches Analysts Off Guard With ‘Kitchen Sink’ Q1 – Why This Fund Manager Is Wary Of EV Giant’s Stock
Wood has maintained a strong belief in Tesla, with the company being the second-largest holding in Ark Innovation ETF ARKK, representing an investment of $677.4 million and accounting for 8.93% of the fund’s total holdings.
Although Tesla attributed its delivery decline to factory shutdowns and the initial phase of the Model 3 production ramp-up, it marked the first year-on-year decrease since the COVID-19 pandemic impacted results in the June 2020 quarter.
Market Movement: Tesla shares registered a 1.06% decline in premarket trading on Wednesday after closing at $166.63 on Tuesday as reported by Benzinga Pro.
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Discover more: Tesla Analysts Assess Ugly Q1 Numbers: Disaster, Train Wreck, Horror Show, Nightmare – Will the Storm Pass or Darker Days Await?
Image credits: Flickr and Ark Invest
