Cathie Wood has some good news for Tesla, Rivian, Lucid, and electric vehicles in general

Famed asset manager Cathie Wood has a really interesting take on current events.

Sunday, March 13, 2022 | Chimniii Desk

Cathie Wood of Ark Investing has watched her fortunes rise and fall during a period when the stock market was extremely volatile. She probably took too much credit when her various exchange-traded funds were performing well, and now she's taking too much blame now that they're not.

That's how every high-profile stock picker operates, and it's not dissimilar to how Warren Buffett, Carl Icahn, George Soros, or anyone else who has become famous for being correct more often than not when it comes to stock choosing operates.

Wood, on the other hand, soared swiftly and became a white-hot star (and people love to see quick falls after quick rises). That has made her a little controversial, but her fresh take on old should gain her some admirers among Tesla (TSLA) - Get Tesla Inc Report, Lucid Motors (LCID) - Get Lucid Group, Inc. Report, Rivian (RIVN) - Get Rivian Automotive, Inc. Class A Report, and other electric-vehicle companies.

What she says should create anxiety among gasoline-car businesses like Ford (F) - Get Ford Motor Company Report and General Motors (GM) - Get General Motors Company Report, as well as greater rationale for their attempts to shift to EVs.

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Wood stated on Twitter (TWTR) - Get Twitter, Inc. Report that not only has oil demand peaked, but that the ripple effect produced by everything from the Biden administration's actions to Russia's invasion of Ukraine will hasten the destruction of oil demand. In essence, she stated that, while oil's days were numbered, people may be compelled to switch to electric vehicles sooner owing to present conditions.

"At the periphery, the rapid migration to electric mobility will obliterate oil usage. Oil prices will fall under the weight of decreasing demand in the long run, albeit it will take longer than I predicted. Problems are solved via innovation "she continued.

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Although not everyone on social media agreed with her, this tweet was fairly representative of the reactions (at least the polite ones).

What Does This Mean for Rivian, Tesla, and Lucid?

When it comes to electric vehicle demand, we may be approaching a tipping point. Low gas costs have made people more eager to buy gas guzzlers like SUVs and pickup trucks, while high gas prices have been excellent for fuel-efficient automobiles.

More individuals may now be willing to pay the money for an electric vehicle rather than a little car that uses less gas. The issue could be that Tesla, Rivian, and Lucid, as well as the rest of the EV industry, don't have any electric vehicles to sell.

Rivian and Lucid now produce almost no automobiles and will ramp up production over time to reach meaningful numbers. Tesla has a one-million-unit production rate and may be able to treble that.

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During Tesla's fourth-quarter earnings call, Elon Musk made it clear that he recognises the opportunity.

"This year, Tesla's primary focus is on increasing output. As a result, whether we introduced new automobiles last year or this year, our overall vehicle output would decline. This is an extremely crucial topic that I believe many people do not comprehend "he stated

Essentially, Musk intends to spend all of his resources to increase the number of Tesla cars produced because he sees the same opportunity that Wood does.

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