Wood pointed out that she predicted the electric vehicle giant’s stock price would reach $3,000 by 2025, a prediction considered “crazy” considering the company’s current stock price is less than $700.
"We believe the reason Tesla's valuation is so inefficient is because analysts are short-sighted and the wrong analysts are tracking it," Wood said. She explained that Tesla is a diversified technology company, but it is being studied by Wall Street auto analysts.
"Tesla is a technology company, but it's more than just a technology company," Wood said, referring to Tesla's energy storage,RobotArtificial intelligence and software as a service (SaaS) businesses. She said, "So we have three analysts building Tesla models."
Wood said the market capitalization of the public stock market, which focuses on transformative innovation, was about $7 trillion in 2019 and doubled to $14 trillion in 2020. “We believe that in the next 5 to 10 years, this figure will reach more than $75 trillion, which will likely exceed all the appreciation in the stock market, because the other side of disruptive innovation is creative destruction. Therefore, traditional benchmarks are increasingly experiencing value traps because these traps will be broken or destroyed.”
Wood stated, "It's crucial to view innovation correctly, and I don't think traditional research departments can do that right now."
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