In his weekly newsletter Cathie Wood‘s ARK Investment Management has argued that electric vehicles likely to capture a much higher market share than the fund previously forecast.

Instead of 48 million units, EV sales would increase eight-fold from 8-9 million units this year to about 67 million in 2027, it said sam corus, Director of Research, Autonomous Technology and Robotics at ARK.

However, ARK has also stated that multiple forces could derail this forecast.

“Perhaps EV production will not be able to scale as quickly due to material shortages or technology issues. Perhaps a sharp drop in used car prices will pose a greater competitive threat than we anticipate,” Korus wrote.

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The fund also highlighted that according to Wright and ARK’s introductory model, as the cost of manufacturing EVs with a 300-mile range continues to fall, their market share will reach about 67%, or 48 million units, in 2027.

Wood firmly believes in it Tesla Inc TSLA who made a top contribution ARK Innovation ETFs ARKK and ARK Next Generation Internet ETFs ARKW Third quarter performance. The EV maker is the company’s flagship fund’s second-largest holding.

On October 20, Wood had purchased over 66,000 shares of Tesla stock at an estimated value of over $13 million.

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