Tesla, Inc. TSLA stalled its post-earnings sell-off on Friday and ended modestly higher for the session. As the stock bounces around an eight-month low, Cathie Wood’s Ark Invest continued to pile into the stock.
Ark Invest’s Faith in Tesla: Ark’s flagship exchange-traded fund, the Ark Innovation ETF ARK, and the Ark Next Generation ETF ARKW accumulated 182,541 Tesla shares on Friday, adding to the 177,870 shares bought on Thursday. The purchase is valued at $65.93 million.
Market Performance: Tesla’s shares have been on a downtrend since late October, trimming the stock’s annual gains to about 101%. The weakness continued into the new year as the broader market rally stalled in early January amid apprehensions over whether the Fed will cut rates.
Tesla reported a double miss in its fourth-quarter performance and signaled a significant slowdown in volume growth in 2024, leading to a further decline in investor confidence.
Ark Invest’s Stance: Despite the stock’s slump, Cathie Wood remains bullish on Tesla, envisioning the stock to hit $2,000 by 2027, with the estimated enterprise value largely derived from the yet-to-be launched robotaxi service.
Tesla is the second-biggest holding of ARKK and the sixth-biggest holding of ARKW.