Tesla, Inc. TSLA experienced a post-earnings sell-off but managed to end the week on a modestly high note, despite hovering around an eight-month low. This was accompanied by Cathie Wood’s Ark Invest’s continuous accumulation of Tesla shares.
Ark’s Position: Ark’s flagship exchange-traded fund, the Ark Innovation ETF ARK, and the Ark Next Generation ETF ARKW procured 182,541 Tesla shares on Friday, valued at $33.45 million based on the day’s closing price of $183.25.
This followed a purchase of 177,870 shares worth $32.48 million on Thursday, with the combined investment totaling a staggering $65.93M for the week.
Tesla shares had been on a downtrend since late October, reducing the stock’s annual gains to about 101%. The drop persisted into the new year due to a stalled broader market rally and apprehensions over potential Fed rate cuts.
Despite a recovery for other “Magnificent Seven” mega-cap tech stocks in late January and optimistic market sentiments, Tesla continued its decline. Prior to its Q4 earnings report, uncertainty about the company’s performance led traders to remain cautious.
In its earnings report, Tesla delivered a double miss and heightened investor concerns by signaling a potential substantial reduction in volume growth in 2024.
However, Wood remains bullish on Tesla, anticipating a $2,000 per share by 2027, with a significant portion of the estimated enterprise value stemming from the yet-to-be-launched robotaxi service.
Tesla is the second-largest holding of ARKK and the sixth-largest holding of ARKW.
ARKK closed Friday’s session up 0.22% at $45.92, according to Benzinga Pro data.
