- Cathie Wood, founder of ARK Invest, has aggressively bought Tesla stock on the recent dip, spending $141 million in January alone.
- Tesla stock has plunged 25% in January as demand concerns and slowing growth weigh on the stock. Wood’s ARK Innovation ETF is also down 10% year-to-date.
- Wood remains highly convicted on Tesla’s long-term potential, with a $2,000 price target for 2027. Her buying the dip signals enduring confidence in Tesla’s growth story despite near-term headwinds.
Cathie Wood, founder of ARK Investment Management, has been aggressively buying the dip in Tesla stock despite the recent selloff. Her conviction remains strong in the electric vehicle maker’s long-term growth story.
Wood Buys the Dip
Wood has purchased nearly 690,000 Tesla shares across two ARK ETFs in January alone, spending an estimated $141 million. This buying comes after she had sold Tesla shares for three straight quarters last year.
Tesla Stock Slumps
Tesla stock has plunged 25% in January as demand concerns weigh and Wall Street turns bearish. Wood’s flagship ARK Innovation ETF is also down 10% year-to-date. The selloff intensified after Tesla’s latest earnings, where slower growth was forecasted.
Long-Term Bull Case
Wood has been a Tesla bull for years, with the stock being a top holding. She sees robotaxis driving growth. Her firm’s 2027 price target is $2,000. Wood often invests in disruptive companies with a 5+ year view.
Buying the Dip Signals Conviction
Analysts say Wood’s latest round of buying displays conviction even as sentiment sours. Investors were waiting for an entry point after Tesla’s big 2021 run. Wood is likely seizing the recent dip as a long-term opportunity.
Conclusion
Despite near-term headwinds, famed investor Cathie Wood is holding fast to her positive long-term outlook on Tesla. Her continued buying highlights enduring confidence in the electric car maker’s growth trajectory.
