It's no secret that Cathy Wood is a fan of Tesla (TSLA) -- the stock is the largest single holding in Wood's Ark Invest portfolio -- and this week she explained in an interview why the company is on the cutting edge of artificial intelligence.
"The real sleepers out there are the companies with not only artificial intelligence expertise but also domain expertise and also large pools of proprietary data," Wood told Fox Business. "And that last one will make all the difference between the winners and the losers," Wood said.
"Tesla... probably is one of the biggest beneficiaries of artificial intelligence and it is the only auto manufacturer to design its own AI chip. And we do believe that it is in the pole position to be the leader in a winner-take-most market called autonomous taxi platforms."
Between now and 2030 autonomous taxi platforms revenue opportunities will be between $8 trillion and $10 trillion from $0 in revenue now, according to Wood.
While Tesla is bound to see more competition as the EV/AI market matures, Wood sees Tesla as being a cut above the rest thanks to the data collection it has already engaged in.
"Tesla has more real world driving data... than all of the other auto companies and tech companies involved in trying to get into this platform opportunity combined," Wood said.
Shares of Tesla Inc. fell 6.12% to $194.77 Monday as investors fretted over declining margins even after the company reported better-than-expected first-quarter deliveries over the weekend.
