Cathie Wood’s Ark Invest firm has made headlines recently for its significant purchase of Tesla stock after its shares dropped nearly 10% following the company’s Q1 financial announcement.
The purchase was made through ARK Innovation ETF and ARK Next Generation Internet ETF, with Tesla stock being the top holding in ARK Investment with a weight of 9.28%. The total worth of the Thursday purchase is around $41.7 million, based on Tesla stock’s closing price of 162.99.
Along with the purchase, Ark Invest predicted that Tesla will reach a $2,000 per share price in 2027, with sales between 10.3 million and 20.7 million and revenue from autonomous driving. However, it is important to note that Ark Invest has made similar sky-high predictions about Tesla sales and robotaxis that haven’t come to pass in the past. A year ago, Cathie Wood’s Ark predicted a split-adjusted TSLA price of 1,533 in 2026.
Not everyone shares Ark Invest’s optimism. Truist downgraded TSLA stock to a “Hold” rating, slashing its price target to 154. This downgrade came after Tesla’s gross margins dived more than expected, and Elon Musk signaled more declines could be coming. Despite this, Tesla’s recent price cuts have continued in April, but on Friday, Tesla raised the prices of its Model S and X Plaid versions by $3,000. The base Model X price was also raised by 2.6% to $97,490 and the Model S price by 2.9% to $87,490.
Tesla’s recent stock drop has some investors worried, but others see it as an opportunity for long-term gains. Tesla no longer has a base, but if it rebounds, it could likely form a double-bottom base with a 207.89 buy point, according to MarketSmith analysis. Tesla sits fifth in IBD’s Auto Manufacturers industry group with a 67 Composite Rating out of 99 and an EPS Rating of 92 out of 99.
Regardless of differing opinions on Tesla’s future, it is clear that the company continues to generate significant interest from investors and analysts alike. Cathie Wood’s Ark Invest firm is just one example of the many investors that are willing to take a risk on the electric vehicle giant. As Tesla continues to innovate and expand its operations, it will be interesting to see how the stock market responds in the coming months and years.
