Why Tesla Is Preferred Choice Of Uber Drivers: Cathie Wood Weighs In

Cathie Wood took to Twitter late on Wednesday to underline the virtues of electric vehicles over their gas-powered counterparts.

What Happened: While sharing Scale AI founder Alexander Wang’s view that FAANGs are no longer safe havens, Wood noted that the Nasdaq 100 is heavy with FAANGs and it has added another FANG in the form of Diamondback Energy Inc. (NASDAQ: FANG) when it rebalanced in December.

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FAANGs is the acronym for some mega-cap tech stocks, namely Meta Platforms Inc. (NASDAQ: META), Apple Inc. (NASDAQ: AAPL), Amazon Inc. (NASDAQ: AMZN), Netflix Inc. (NASDAQ: NFLX) and Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG). These stocks came under significant selling pressure in 2022, dragging the overall market lower.

Wood noted that the addition of DaimondBack Energy came despite oil prices nearly halving since March. Electric mobility will continue to destroy oil demand, she said, citing research by Ark Invest.

Advantage Tesla: Car rental company Hertz Global Holdings Inc. (NASDAQ: HTZ) recently suggested that the cost of maintaining its electric vehicle fleet is 50% lower than gas-powered vehicles, Wood said. She suggested that this prompted several of her recent Uber drivers to rent Tesla Inc. (NASDAQ: TSLA).

“In other words, electric vehicle miles traveled are rising faster than expected, destroying oil demand,” she added.

Wood said innovation solves problems and gains traction during tough times. She noted that auto sales dropped 8% in 2022 even as EV sales soared. Tesla’s EV sales jumped 40% for the fourth quarter and the full year, she added.

Price Action: Tesla closed Wednesday's session 5.12% higher, at $113.64, according to Benzinga Pro data.

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