Cathie Wood Doubles Down on Autonomous Driving with Kodiak AI Investment
Cathie Wood, CEO of ARK Invest, is expanding her bet on autonomous vehicles by investing in recently public Kodiak AI (KDK). This move signals a diversification beyond passenger robotaxis and into the autonomous freight sector, suggesting a shift in where Wood anticipates the next wave of value creation within the autonomous vehicle market.
ARK Invest's Continued Faith in Autonomous Technology
ARK Invest has long championed disruptive autonomy, particularly in the form of robotaxis. Wood believes this technology has the potential to transform auto economics, leading to software-like margins and significant valuation growth. This belief is reflected in ARK's substantial investment in Tesla (TSLA), with a combined portfolio weight nearing 10%, equating to approximately $1.50 billion in market value. ARK’s latest model projects a $2,600 price target for Tesla by 2029, with a bear case of $2,000 and a bull case of $3,100.
Furthermore, Wood estimates that Tesla Robotaxis could contribute 90% of the company's enterprise value by 2030, representing a multi-trillion-dollar opportunity. The ARK Autonomous Technology & Robotics ETF (ARKQ) has seen impressive growth, up 46% year-to-date through September 26, significantly outperforming the S&P 500's 15% gain.
Kodiak AI: A New Focus on Autonomous Freight
While Tesla has recently launched its Robotaxi service in Austin, albeit with a limited pilot/invite-only footprint, Wood's investment in Kodiak AI indicates a broader vision for autonomous vehicles. On Friday, ARKQ acquired 784,610 shares of Kodiak AI, valued at nearly $416,627. Kodiak recently began trading on the Nasdaq on September 25, following a merger with a shell company, Ares Acquisition Corp. II.
Unlike competitors focusing primarily on passenger ride-hailing, Kodiak AI specializes in autonomous freight. Their "Kodiak Driver" technology enables fully driverless long-haul routes, with deployments currently underway at Atlas Energy's Permian Basin operations. The company utilizes Roush-built, factory-upfitted trucks and has a remote-assist partnership with Vay to manage challenging low-speed scenarios.
The Future of Autonomous Vehicles
Kodiak AI's focus on heavy-duty applications, modular design, and extensive real-world testing positions it as a strong contender in the autonomous trucking sector. Cathie Wood's investment in Kodiak suggests she recognizes the significant potential in autonomous freight and is strategically diversifying ARK Invest's portfolio to capitalize on this emerging market. The SPAC deal valued the startup at $2.5 billion, giving Wood’s fund early exposure to the newest autonomous-vehicle name on the market.
[SRC] https://finance.yahoo.com/news/cathie-wood-makes-surprising-deeper-171700533.html
