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 is currently trading at less than $700.
"We believe that the reason why valuing Tesla is so inefficient is that analysts are short-sighted and the wrong analysts are tracking it," Wood said, explaining that Tesla is a diversified tech company, but it's 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,Robot, artificial intelligence and software-as-a-service (SaaS) business. "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 this figure will reach more than $75 trillion in the next five to 10 years, likely to exceed all appreciation in the stock market, because the other side of disruptive innovation is creative destruction, so today traditional benchmarks are increasingly showing value traps, and the reason 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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