SPY389.63+0.17 0.04%
DIA312.42-0.01 0.00%
IXIC11,354.62-33.88 -0.30%

Cathie Wood Finds Elon Musk's Comment On Psychedelics, Ketamine An 'Interesting Thesis' For This Stock

Popular stock picker Cathie Wood said on Sunday she finds Tesla Inc (NASDAQ: TSLA) CEO Elon Musk’s comments on the effectiveness of psychedelics and other plant-based substances as treatments for mental health-related issues an &ldquo

Benzinga · 05/02/2022 06:01

Popular stock picker Cathie Wood said on Sunday she finds Tesla Inc (NASDAQ:TSLA) CEO Elon Musk’s comments on the effectiveness of psychedelics and other plant-based substances as treatments for mental health-related issues an “interesting thesis.”

What Happened: Wood’s firm Ark Investment Management has been building exposure in billionaire entrepreneur Peter Thiel-backed ATAI Life Sciences NV (NASDAQ:ATAI),  a clinical-stage biopharmaceutical company that focuses on the use of psychedelics for the treatment of mental health disorders.

“I’ve talked to many more people who were helped by psychedelics [and] ketamine than SSRIs & amphetamines,” Musk had earlier tweeted in response to a thread discussing “Adderall” and how “prescribed psychedelics could replace amphetamines and SSRIs over the next decade.”

See Also: EXCLUSIVE: ATAI Life Sciences Deploys Decentralized Approach To Transform Mental Health Treatments

Why It Matters: St. Petersburg, Florida-based Ark Invest has piled a total of 1.6 million shares, worth $6.9 million, in ATAI Life Sciences since the beginning of the year.

The fast-growing psychedelics sector is drawing investor interest with many now listed on the Nasdaq and NYSE.

Price Action: ATAI closed 2.9% lower at $4.3 on Friday.