Tesla, Inc. (NASDAQ:TSLA) shares tumbled over 12% on Thursday after the company reported fourth-quarter earnings and revenue that trailed expectations and warned of a significant decline in volume growth in 2024. Notwithstanding the downward spiral in the stock, one bullish investor doubled down on her Tesla bet.
What Happened: Cathie Wood-led Ark Invest on Thursday accumulated Tesla shares through two of its actively-managed exchange-traded funds, namely Ark Innovation ETF (NYSE:ARKK) and Ark Next Generation Internet ETF (NYSE:ARKW).
ARKK, the flagship ETF of Ark, added 148,246 Tesla shares and ARKW boosted its Tesla holdings by 29,624. Together, Ark bought 177,870 shares of Tesla Thursday, valued at $32.48 million.
Tesla closed Thursday’s session down 12.13% at $182.63, according to Benzinga Pro data. The slump led to an erosion of $80.4 billion in market capitalization in a single day.
The electric-vehicle giant’s stock makes up roughly 7.77% of the portfolio weighting of ARKK and they are the second-biggest holding of the ETF. In ARKW, Tesla accounts for 5.10% of the weighting and is the sixth biggest holding.
At the end of 2023, Ark’s stake in Tesla was at 3,802,519, valued at $944.85 million.
See Also: Everything You Need To Know About Tesla Stock
Why It’s Important: Thursday’s Tesla buy is in line with Ark’s practice of piling into its major portfolio stocks in the wake of any potential weakness. Wood is bullish on Tesla and is a big believer in its self-driving technology that is core to the robotaxi services that the Elon Musk-led company is expected to launch in the future.
Ark has a $2000 price target for Tesla by 2027, with about 67% of the enterprise value attributable to the robotaxi service.
With limited catalysts on the horizon and the prospect of the EV market remaining in a contraction mode, Tesla stock is on track to see extended weakness.
Future Fund’s Gary Black said in a post on X that he sees Tesla stock rebounding on Friday if the company does not announce further price cuts in the U.S. Thursday night. Friday’s move largely hinges on how a key economic data scheduled for the day pans out.
The Bureau of Economic Analysis is scheduled to release its personal income and spending report at 8:30 a.m. ET Friday. Data from the report, namely the annual rate…
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