Wood noted that she predicted the electric vehicle giant's stock price would reach $3,000 by 2025, a forecast considered "insane" considering the company's current stock price is less than $700.
"We think the reason the valuation of Tesla is so inefficient is that the analysts are short-sighted and the wrong analysts are tracking it," Wood said, explaining that Tesla is a diversified tech company, but it is Wall Street's auto analysts who study it.
"Tesla is a tech company, but it's not just a tech company," Wood said, referring to Tesla's energy storage,RobotArtificial Intelligence and Software as a Service (SaaS) businesses. "So we have three analysts building Tesla models," she said.
The market capitalization of the public stock market focused on transformative innovation was about $7 trillion in 2019 and doubled to $14 trillion in 2020, Wood said. "We believe that over the next five to 10 years, this number will reach over $75 trillion and will most likely exceed all appreciation in the stock market, because the other side of disruptive innovation is creative disruption, and as a result, there are increasingly value traps in traditional benchmarks today, and the reason for this is that these traps will be destroyed or destroyed."
"It's critical to put innovation in perspective, and I don't think traditional research departments can do that right now," Wood said.
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