If its price reached its five-year target, Tesla Inc. would be sold by Cathie Wood in the coming year.

The stock of the electric vehicle manufacturer is currently trading at around $791, and she has a fundamental price objective of $3,000 for the next five years, according to her. "I guess that we would be peeling out of it if nothing changed in our perspective and we got to $3,000 next year," she added.

Following a panel at the Morningstar Investment Conference on Wednesday, the head of Ark Investment Management spoke at a news briefing. During the session, she debated seasoned investor Rob Arnott, who has been dubious of high-value growth stocks like Tesla.

Wood was questioned how investment managers should select when to exit investments by Arnott, the chairman of Research Affiliates.

He asked, "What is the sale discipline that can secure those gains?" "What is the sale discipline that allows you to rotate into undiscovered disrupters that the market is ignorant of?"

Wood's response to his inquiry about selling Tesla occurred during the press briefing. During the panel, though, she justified her well-known Tesla wager.

She mentioned the price drops in battery pack systems and some of the benefits of electric vehicles, such as that she hasn't had to travel to a petrol station since September 2018.

She anticipates the average price of an electric vehicle will fall below that of a gas-powered automobile in the next year or so as a result of such decreases. That trend is expected to continue until 2025, when the average electric vehicle will cost $18,000, compared to $25,000 to $26,000 for a standard gasoline vehicle.

After her firm's exchange-traded funds outperformed most of the US market last year, Wood has had a remarkable year. After returning nearly 150 percent last year, her flagship Innovation ETF (ticker ARKK) is down 5% this year.

Wood defended her disruptive technology bets, claiming that her flagship strategy will provide a 30 percent compound annual rate of return. She also stated that she believes the market is not in a bubble.

Following a rally in Tesla stock, Ark's funds have sold part of the company's holdings. Nonetheless, according to Bloomberg statistics, the electric vehicle maker is their most significant asset. Ark's strategy frequently entails selling some of its winners to invest in more promising projects.

During the news conference, Arnott was also asked about the future of the China Evergrande Group. He said his stake in the property developer had lost six basis points, but he anticipated Beijing would "ring-fence" the company to prevent the economic consequences.