Cathie Wood, responding to a tweet from Jack Dorsey, said technological innovation, creative destruction, and cyclical factors will rein in inflation.
During an appearance at the Milken Institute conference, Wood also revealed what she thinks will be the "big, new frontier" in investing.
Three of Cathie Wood's ETFs cumulatively sold more than 340,000 Tesla shares Tuesday. Yet, all three funds still have Tesla as their top holding.
Inflation, as measured by the Consumer Price Index, could rise to 3% or even 4% in the coming months, according to Cathie Wood.