Bloomberg Talks: Ark Invest CEO & CIO Cathie Wood (Podcast)

Summary

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Bloomberg Talks: Ark Invest CEO & CIO Cathie Wood

Date: November 6, 2025
Host: Bloomberg
Guest: Cathie Wood (CEO & CIO of Ark Invest)
Episode Focus: Cathie Wood discusses Tesla, Elon Musk’s pay package, AI in healthcare, current tech sector skepticism, and Ark Invest’s portfolio strategy.

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Episode Overview

In this episode, the Bloomberg team interviews Cathie Wood, CEO and CIO of Ark Invest, known for her high-conviction bets on innovation and disruptive technology. The conversation spotlights her continued bullish stance on Tesla, thoughts on Elon Musk’s controversial pay package, the importance of leadership for ambitious projects like robotaxis and humanoid robots, and her broader perspective on market skepticism and underappreciated investment sectors.

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Key Discussion Points and Insights

1. Elon Musk’s Pay Package and Tesla’s Growth (00:29–03:12)

• Alignment of Incentives:

  • Cathie Wood expresses strong support for Elon Musk’s pay package, emphasizing historic growth targets and unprecedented financial performance.
    • Quote:

      "I do not believe any company anywhere near this size has ever delivered a compound annual rate of growth for EBITDA... of 41% over 10 years. No company has done that... If he and his team are able to deliver on that number, the stock is going to outperform enormously."
      — Cathie Wood, 00:56

• Impact of Musk Leaving Tesla:

  • Wood highlights concerns if Musk were to leave, particularly about Tesla’s cutting-edge projects in AI and robotics:
    • Robotaxis are already rolling out and represent a significant portion of Tesla’s future value.
    • The ambitious humanoid robot project would hinge heavily on Musk’s leadership and vision.
    • Quote:

      “He already has a running start because robotaxis are robots. They're electric, they're powered by AI. Those are the three innovation platforms that will power humanoid robots as well. So he's ahead of the game on that one as well.”
      — Cathie Wood, 02:39

    • 90% of Ark’s 2030 Tesla price target ($2,600) is attributed to robotaxis, with robots playing a minor part — but with potential upside if development accelerates.

• Why Paying Musk Matters:

  • Responding to why investors should approve Musk’s compensation package if the business could manage without him, Wood clarifies:
    • Ark would stay invested for the robotaxi business, but would lack conviction on humanoid robots, and would gradually reduce their position as that part of the story became more significant.
    • Quote:

      “Over time, of course, as the story would depend more and more on that leg of the story, we would be taking our position down.”
      — Cathie Wood, 03:34

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2. Tech Sector Skepticism and “Reality Check” (03:47–05:15)

• Cycle of Optimism and Skepticism:

  • Wood distinguishes today’s tech landscape from the late 1990s dot-com bubble, noting that skepticism is prevalent and healthy.

    • Unlike the 1990s when “valuations [were] based on the number of eyeballs,” investors are now wary, especially about the heavy investments in data centers and AI infrastructure.
    • Quote:

      “Anyone who went through the late 90s will remember there was no skepticism. And we had valuations based on the number of eyeballs balls on a website maybe 10 years from then. We're not seeing that right now.”
      — Cathie Wood, 04:13

  • Skepticism as an Opportunity:

    • Considered a positive, signaling that market exuberance is not at an unsustainable high; Wood sees it as a chance for savvy investors.

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3. Portfolio Strategy and Undervalued Healthcare Innovation (05:15–06:04)

• AI’s Underappreciated Role in Healthcare:

  • Wood highlights healthcare as “the most undervalued part of our portfolios,” predicting profound gains from the application of AI.
  • Challenges stem from fragmented expertise; healthcare and tech analysts generally do not overlap, leading to inefficiencies and overlooked opportunities.
    • Quote:

      “Probably the most undervalued part of our portfolios is… healthcare. Because we think that is going to present the most profound application of AI out there. And yet it is highly underappreciated because... healthcare analysts aren't comfortable with tech and tech analysts aren't comfortable with health care.”
      — Cathie Wood, 05:22

• Ark’s Unique Research Approach:

  • Ark organizes analysts by technology rather than sector, seeking cross-industry innovation and uncovering market inefficiencies.
    • Quote:

      “We're very focused on the technologies first and how they're going to scale across sectors. So our analysts are organized by technology and think there's a huge inefficiency there.”
      — Cathie Wood, 05:46

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Notable Quotes & Memorable Moments

• "Our price target, $2,600 in 2030 is 90% of that valuation is Robo taxi."
  — Cathie Wood, 02:22

• "If [humanoid robots] evolve as quickly as Elon thinks. Now remember, that's Elon time..."
  — Cathie Wood, 02:30

• "We're not seeing... valuations based on the number of eyeballs balls on a website maybe 10 years from then. We're not seeing that right now."
  — Cathie Wood, 04:15

• "Health care analysts aren't comfortable with tech and tech analysts aren't comfortable with health care... there's a huge inefficiency there."
  — Cathie Wood, 05:39

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Important Timestamps

• 00:29 — Introduction to Cathie Wood and the Tesla/Elon Musk pay package debate.
• 01:38 — Discussion of Tesla’s innovation pipeline: robotaxis and humanoid robots.
• 03:12 — The rationale behind Ark’s support for Musk’s compensation; implications if Musk left.
• 03:47 — Macro tech sector trends: market skepticism, comparisons to dot-com bubble.
• 05:15 — AI in healthcare, Ark’s research philosophy, portfolio positioning.

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Summary

Cathie Wood offered robust defenses for Elon Musk’s leadership and compensation as crucial to Tesla’s continued innovation, particularly in autonomous vehicles and robotics. She differentiated today’s market skepticism from past bubbles, and emphasized the undervalued opportunity in healthcare AI, highlighting Ark’s technology-first approach. The discussion showcased Wood’s conviction in disruptive innovation, her strategic long-term perspective, and her belief in cross-disciplinary thinking as an edge in investing.

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Transcript

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[Cathie Wood]

Bloomberg Audio Studios Podcasts Radio.

[Interviewer 1]

News the Ark Invest CEO Cathie Wood, one of Tesla's biggest bulls, the EV maker, the top holding in her flagship innovation etf, has this to say. I do not understand why investors are voting against Elon's pay package when they and their clients would benefit enormously if he and his incredible team meet such high goals. Kathy joins us now for more. Kathy, thanks for making some time for us this morning. Good morning to you all. Do you think, Kathy, the incentives are well aligned?

[Cathie Wood]

Yes, we do. I do not believe any company anywhere near this size has ever delivered a compound annual rate of growth for EBITDA, which is a bottom line number of 41% over 10 years. No company has done that. So yes, indeed, the incentives are aligned. If he and his team are able to deliver on that number, the stock is going to outperform enormously.

[Interviewer 2]

Kathy, if by chance this proposal is rejected, would you consider shedding some of your Tesla position?

[Cathie Wood]

So I'm happy that the prediction markets are at 90 to 95% in terms of this is going through, so we don't have to think about that. Clearly. If Elon left, we think about it in two ways. One, we think robotaxis. He has them the starting gate as of June and now they're rolling out and that AI project is well underway. If he had left five years ago, three years ago, it probably wouldn't be anywhere near where it is. What we now think though is in order to capitalize on humanoid robots, which, that's a much more difficult project that, yes, Elon's brilliance and the team he has attracted around him are going to be necessary to pull that off. Our price target, $2600 in 2030 is 90% of that valuation is Robo taxi. We have very little for humanoid robots. If humanoid robots evolve as as quickly as Elon thinks. Now remember, that's Elon time, but he already has a running start because robotaxis are robots. They're electric, they're powered by AI. Those are the three innovation platforms that will power humanoid robots as well. So he's ahead of the game on that one as well. But I do believe he's the right leader to bring that part of the story to Life as well.

[Interviewer 1]

Kathy, I've got to ask you this, though, to follow up on Lisa's question. If you wouldn't sell if he wasn't CEO, then why should we pay him that much to be the CEO?

[Cathie Wood]

What I'm saying is we would feel comfortable with the robot, Robotaxi part of the model, but we would not be able to build with confidence the humanoid robot part of the model. So over time, of course, as the, as the story would depend more and more on that leg of the story, we would be taking our position down.

[Interviewer 2]

You talked earlier, Kathy, the past couple of days about this reality check that's going on in the tech sector. And I understand that Tesla is sort of in its own place that you do hold them for the long term. How do you understand the reality check that's currently going on within a lot of the biggest tech stocks and this sense of skepticism about whether they can keep growing at that rate versus the long term? Bullish bet.

[Cathie Wood]

You know, I'm really happy that there is so much skepticism out there. Anyone who went through the late 90s will remember there was no skepticism. And we had valuations based on the number of eyeballs balls on a website maybe 10 years from then. We're not seeing that right now. We are seeing, wait a minute, they're spending a lot of money on these data centers. This is a little bit of a different story than I was investing in. Certainly in terms of when I say I, the average investor was investing in with the Mag 6, those were just cash cows and, and had huge cash position. Everything's changing here. It's making the, the typical investor a little more, I'll say, skeptical that this is not just the cash register ringing anymore. This is, wait, a big bet on the future. So I'm happy there's skepticism. I think it's a good thing.

[Interviewer 2]

Are you buying right now? Are you seeing the skepticism as a chance to build some of your portfolio?

[Cathie Wood]

Oh, sure. You know, and probably the most undervalued part of our portfolios is in life is health care. Because we think that is going to present the most profound application of AI out there. And yet it is highly underappreciated because, you know, health care analysts aren't comfortable with tech and tech analysts aren't comfortable with health health care. And you know, we've got a very siloed ecosystem in terms of the way research is done at ahrq. We're very focused on the technologies first and how they're going to scale across sectors. So our analysts are organized by technology and think there's a huge inefficiency there.

[Interviewer 1]

Kathy, thanks for being so generous with your time this morning. We appreciate it. Cathy Wood that the Ark Invest CEO on Elon Musk of Tesla and a.

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