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Investors Business Daily
Investors Business Daily

Cathie Wood Pounces As Tesla Stock Plunged On Earnings Report

Cathie Wood and her Ark Invest firm loaded up on Tesla stock Thursday as the EV giant dropped to its lowest levels since late January after announcing first-quarter earnings.

Wood's Ark Investment Management spent an estimated more than $40 million on 256,000 TSLA shares Thursday, after Tesla sank nearly 10% following the EV company's first 2023 financial announcement.

As of April 21, Tesla stock is the top holding in ARK Investment with a weight of 9.28%. The recent Tesla stock purchases were done through ARK Innovation ETF and ARK Next Generation Internet ETF. The total worth of the Thursday purchase is around $41.7 million, based on Tesla stock's closing price of 162.99.

Cathie Wood's Ark Raises TSLA Price Target

Along with the TSLA share purchases, Wood's Ark Invest also predicted Thursday night Tesla will reach a $2,000 per share price in 2027. Wood's firm see Tesla's autonomous "robotaxi business" as a "key driver" for this estimated valuation.

Cathie Wood's Ark sees Tesla sales in 2027 between 10.3 million and 20.7 million, with massive revenue from autonomous driving. Ark has long made sky-high predictions about Tesla sales and robotaxis that haven't come to pass.

A year ago, Cathie Wood's Ark predicted a split-adjusted TSLA price of 1,533 in 2026.

Meanwhile, Truist downgraded TSLA stock to a "Hold" rating, slashing its price target to 154.

Futures: Four Titans Lead Earnings Wave; What To Do Now

Tesla Stock

Tesla stock edged lower early before advancing 1.29% to 165.09 Friday during market trade.

On Thursday, TSLA sank 9.75% to 162.99 Thursday, as gross margins dived more than expected and Elon Musk signaled more declines could be coming. Shares hit their lowest levels since January, well below all moving averages.

This was the second biggest Tesla stock drop in 2023. On Jan. 3, TSLA shares fell 12.24%. Three days later, Tesla stock hit bear market lows of 101.81.

TSLA no longer has a base. If Tesla rebounds it could likely form a double-bottom base with a 207.89 buy point, according to MarketSmith analysis.

Tesla Hikes Model S, X Prices

Meanwhile, Tesla reverse its vehicle price cutting strategy Friday, raising Model S and X prices.

Price cuts have continued in April, with CEO Elon Musk saying on Wednesday's Tesla earnings call he's willing to see margins fall further to boost production. However, on Friday, Tesla hiked U.S. prices for the Model S and X Plaid versions by $3,000, to $107,490. It raised the base Model X price by 2.6% to $97,490 and the Model S price by 2.9% to $87,490.

Tesla sits fifth in IBD's Auto Manufacturers industry group. TSLA has an 67 Composite Rating out of 99. The stock has an 28 Relative Strength Rating. The EPS Rating is 92 out of 99.

Please follow Kit Norton on Twitter @KitNorton for more coverage.

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