Cathie Wood Pounces As Tesla Stock Plunged On Earnings Report

Ark Invest bought Tesla stock when it dropped Thursday, expecting the value to rise again.

Cathie Wood, the CEO of Ark Invest and Cathie Wood herself bought Tesla (TSLA), as it fell to its lowest level since late January following the announcement of first-quarter results.

Wood's Ark Investment Management invested an estimated $40 million in 256,000 TSLA stock shares on Thursday after Tesla's share price dropped nearly 10% following its first financial announcement for 2023.

Tesla stock was the largest holding at ARK Investment as of April 21 with a weighting of 9.28%. Recent Tesla stock purchases have been made through ARK Innovation ETFs (ARKK) & ARK Next Generation Internet ETFs (ARKW). According to the closing price of Tesla's stock at 162.99, the total value of Thursday's purchase was around $41.7million.

Wood's Ark Invest, along with its TSLA shares purchases, also predicted that Tesla would reach a $2,000 price per share in 2027. Wood's Ark Invest sees Tesla's autonomous "robotaxi" business as a "key factor" in this estimated valuation.

Cathie Woods Ark predicts that Tesla sales will range between 10,3 and 20,7 million in 2027, with massive revenues from autonomous driving. Ark has made many high-flying predictions about Tesla and robotaxis, but they have never come true.

Cathie Wood's Ark forecast a TSLA price split-adjusted of 1,533 by 2026.

Truist has downgraded TSLA to a "Hold", and lowered its price target from 156 to 154.

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Tesla stock began the day lower before rising 1.29% on Friday to 165.09.

TSLA fell 9.75% on Thursday to 162.99, as gross margins dropped more than expected, and Elon Musk hinted that more declines may be forthcoming. The shares have fallen to their lowest level since January and are well below moving averages.

Tesla shares hit a bear market low of 101.81 three days later.

TSLA has no base. According to MarketSmith's analysis, if Tesla recovers it will likely form a two-bottom base at a buy point of 207.89.

Tesla, meanwhile, reversed its strategy of reducing vehicle prices on Friday and raised the Model S and X price.

Elon Musk, CEO of Tesla, said on the earnings call held by the company on Wednesday that he was willing to accept further margin reductions to increase production. Tesla increased the price of its Model S and X Plaid models in the United States by $3,000 on Friday. The Model X base price was raised by 2.6%, to $97.490, and the Model S by 2.9%, to $87.490.

Tesla is ranked fifth in IBD’s Auto Manufacturers group. TSLA is rated 67 out of 99. The stock is rated 28 relative strength. The EPS rating is 92 of 99.

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