Cathie Wood and Ark Invest scooped up nearly 60,000 shares of Tesla in Friday's stock market as CEO Elon Musk seeks further cooperation between his businesses with SpaceX and potentially Tesla investing in his artificial intelligence company, xAI. Meanwhile, Tesla stock has formed a new valid base.
Wood's ARK Innovation ETF on Friday purchased 45,761 shares of Tesla while ARK Next Gen Internet ETF bought 13,944 TSLA shares, according to Wood's ETF daily trade disclosures.
The move by Wood and her Ark Invest ETFs came a day before the Wall Street Journal reported that Musk's SpaceX has agreed to invest $2 billion in xAI, as Musk rolled out the latest version of the Grok chatbot.
Musk earlier this year merged xAI with X, his social media platform formerly known as Twitter. The merger valued xAI at $113 billion. The SpaceX investment is part of xAI's $5 billion equity fundraise announced by Morgan Stanley last month.
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When it comes to Tesla involvement in xAI, Musk on X over the weekend said posted "no" to a question about supporting a merger between the EV giant and the artificial intelligence company. However, Musk also said Tesla could invest in xAI.
"It's not up to me. If it was up to me, Tesla would have invested in xAI long ago. We will have a shareholder vote on the matter," Musk wrote on Sunday.
In 2024, Musk asked social media users in a poll on X if Tesla should invest $5 billion into xAI. The majority voted "yes."
Musk is also integrating xAI's Grok chatbot into Tesla vehicles, with the AI feature available in Tesla vehicles delivered "on or after" July 12, according to Tesla's website.
Tesla stock advanced as high as 322.60 early before paring those gains, edging up 1% to 316.90 at Monday's stock market close. TSLA fell around 0.6% last week to 313.51.
The company reports Q2 earnings and revenue late on July 23. The EV giant also has scheduled its annual shareholder meeting for Nov. 6, 2025, according to federal filings.
The Robotaxi Geofence Expansion
Tesla has also expanded its geofenced area for its limited Model Y robotaxi ride-hailing service in Austin, Texas.
Musk and Ashok Elluswamy, Tesla's vice president of AI, shared videos on X early Monday of an oddly circumscribed expansion to the robotaxi service area in Austin.
Last week, Musk wrote on X that the EV giant's robotaxi ride-hailing service will be "expanding" to a "larger service area in Austin this weekend." Meanwhile, Musk added that Tesla plans to have robotaxi Model Y vehicles on the roads in the Bay Area of California soon.
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"Waiting on regulatory approvals, but probably in a month or two," Musk said on July 9.
The scaling of the robotaxi service is a key part of the bull thesis for Tesla stock. Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote on July 10 that Musk's comments were "positive relative to the recent shift in investor sentiment regarding Tesla's autonomous vehicle efforts."
Musk late on Sunday also hinted a Tesla surprise coming in the next five months. The Tesla chief said he "just left" the Tesla design studio Sunday night.
""Most epic demo ever by end of year. Ever," Musk wrote on X.
Speculation includes this could be Musk eluding to the long-awaited Tesla Roadster or Optimus.
Tesla Stock Performance
The stock rallied from late April to late May in part because Musk said he was backing away from politics and the Trump administration. However, since then, Tesla stock has tumbled and rebounded according to news cycles generated by debate between Musk and President Donald Trump.
The stock initially soared after the robotaxi launch. However, overall Tesla stock is down about 2% since the June 22 service release.
Tesla stock has now formed a new base on a weekly chart with a traditional 367.71 buy point, according to MarketSurge chart analysis.
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At Monday's stock market close, Tesla stock was up 33% since the April 22 Q1 conference call, lifted by robotaxi bets. Shares are down about 21% for the year, and 35% below their all-time high of 488.54.
Tesla stock has a 21-day average true range of 4.53%. The ATR metric, available on IBD's MarketSurge charting tool, gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily stock market action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Investors can keep tabs on the IBD Leaderboard watchlist, the IBD 50 list of top growth stocks and IBD SwingTrader along with the IBD Sector Leaders list.
Tesla stock has a 59 Composite Rating out of a best-possible 99. The Cathie Wood stock also has an 80 Relative Strength Rating and a 58 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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