Tesla and SpaceX will become a single company, a huge conglomerate spanning software and AI, as well as rockets and electric vehicles. More than that: we need to look at how AI agents spend money to understand which sectors and companies will lead the next cycle. Cathie Wood has something to say about everyone—and has also dropped a few metaphorical bombs on the dollar.

It is an especially prolific Cathie Wood who has been speaking publicly in recent weeks. We are taking advantage of the weekend to review what she has said and what could change the markets more radically.

Tesla and SpaceX: There Will Be a Merger by the End of the Year

Cathie Wood is a long-standing investor in Elon Musk’s companies. Tesla made her fortune, and in an effort to replicate that success she has also invested heavily in SpaceX. Wood is convinced that the two companies will announce a merger by the end of the year. Confirmation is still lacking, but the markets appear to like the idea.

This would consolidate the business: a single company would emerge managing everything from rockets to electric vehicles, charging networks and AI, as well as those data centers in space that are Elon Musk’s latest obsession. The two stocks reacted well during the week to Cathie Wood’s forecasts. It should be added that this has been discussed for some time—although official confirmation is still lacking. Could Tesla’s next quarterly results be the right occasion?

The US Still at the Center of the Economic World

Cathie Wood also found time to address the narrative. According to the investor, the narrative of a weak dollar and of American exceptionalism reaching the end of its days has now been reversed. The dollar has begun a recovery that could last a long time, also driven by pro-business policies like those of the 1980s.

Wood’s confidence in this administration therefore appears to be complete, and she expects a period of dollar strength compared with other currencies. She made these comments on the sidelines of a broader discussion devoted to stablecoins, a technology in which Wood invests through shares of Circle, the company that issues USDC.

There Will Be a Battle Over AI Narratives

Wood also found time to discuss AI, another of her major interests. As is well known, ARK funds invest heavily in the sector, so her analysis must be viewed in light of Wood’s direct interest.

According to Wood, there is a significant narrative problem in the US: 8 out of 10 Americans are “hostile” to the sector, and 7 out of 10 do not want data centers near their homes or in the places they visit.

In China, according to Wood, the situation would be radically different: the population broadly supports AI and its development—and this could complicate America’s race for supremacy. A position of supremacy that, we would add, is currently solid and evident.