Cathie Wood’s ARK Investment Management is well known for betting big on disruptive technologies through its exchange-traded funds, headlined by the ARK Innovation ETF (NASDAQ: ARKK). Wood is one of the loudest bullish voices on Wall Street regarding the potential upside of the tech sector in the long term. However, those tightly held beliefs have led to a volatile performance.

For her part, Wood has remained adamant that her investments will be successful in the long run. Wood’s investment approach centres on identifying high-impact innovations. The high-level focus areas are artificial intelligence, DNA sequencing, robotics, energy storage, and blockchain technology. Wood predicts that these five platforms will be prominent growth and change areas for the global economy.Two key concepts underpin Wood’s strategy. The first is that not all innovation produces the same opportunity. To Wood, investable innovation cuts costs, spans sectors and geographies and fosters more innovation. The second is that identifying appropriate investments takes both big-picture and granular research.

It is easy to note how Wood’s bullish outlook doesn’t translate to her funds’ performances. Critics relish the opportunity to kick any fund manager when they’re down, especially prominent names who make big calls like Wood.Yet the report has plenty of gems that should interest investors looking for ideas to grow their capital. One such area is what we call “Global Mobility”, and Ark Investment divides into three sectors: Electric Vehicles, Autonomous Ride-Haul and Autonomous Logistics.

Investing directly in electric vehicle stocks is one way to profit from this mass transition. Another is investing in the companies that supply the batteries, which are electric vehicle’s most critical and costly components. If electric vehicle production significantly increases over the next decade, the demand for EV batteries will similarly skyrocket.

Now investors doubt whether or not the growth will be exponential. ARK believes the entire industry will accelerate vehicle electrification efforts and projects the industry will spend more than $1 trillion, cumulatively, on EV development over the coming 10 years. The money would go for platform development, plants and battery capacity.

Like many high-flying tech and growth investors, Wood loves Tesla (NASDAQ: TSLA). In just January 2023 alone, Wood snapped up more than 806,000 shares (more than US$105 million worth) and made the bold prediction that Tesla’s stock could jump by 500% over the next five years.

Whilst this is a bold prediction, and forecasts like the above should always be taken with a pinch of salt, it’s clear that the electrification transition is happening.

ARK’s Big Ideas report highlights how the debate around EVs has shifted from demand to supply. Based on Wright’s Law, ARK forecasts that EV prices will decline and sales will increase more than 7-fold, or 50% annually, from roughly 7.8 million in 2022 to 60 million units in 2027.

The price of lithium-ion battery cells declined by 97% in the last three decades, and ARK suggests this leads to:

Currently, autonomous ride-hail services delight riders across ~15 cities internationally and could scale into widespread commercial adoption within the next ten years, according to ARK. Autonomous technology should reduce the cost of mobility to ~12% of the average cost of human-driven ride-hail service today. ARK’s research suggests that global autonomous ride-hail platforms will create $14 trillion in enterprise value, based on US$4 trillion in revenue during the next five years.

Additionally, autonomous logistics—including trucks, drones, and robots— should lower delivery costs and increase convenience. Based on assumptions on pricing, ARK estimates that autonomous logistics revenue could scale from nearly zero today to US$1-2 trillion by 2030. Autonomous delivery charges could range from $0.20 to $10 per trip.

A highly autonomous future filled with flying cars may sound like Hollywood fantasy, but so too did the ideas of mass-produced internal combustion engine cars and the internet at particular points in history.

The TAMIM Global Mobility Fund aims to invest in a diverse portfolio of global companies exposed to the $10 trillion autonomous transportation revolution. The Fund invests in a basket of companies that will benefit from the future of mobility, including electric vehicle makers and autonomous driving technology, and picks and shovel enterprises such as semiconductors and rare earth miners. In parallel, the Fund takes short positions against companies that will suffer losses from the same tailwinds, such as car dealers and incumbent vehicle manufacturers.We will be releasing a free video and special report on the future of Global Mobility soon. Keep your eyes on an announcement from us to discover the potential benefits of being exposed to this rapidly growing and transformative industry.