Cathie Wood’s Ark Invest snapped up more Tesla stock last week as the electric-vehicle maker slashed prices in Europe and the US.
Ark Invest exchange-traded funds bought a total 389,305 shares of Tesla stock worth $47 million last week. That came as Tesla announced it would slash prices on its Model 3 and Model Y models. The EV-maker has already cut prices twice in China, with the company battling slowing demand throughout last year amid rising inflation and global recession fears.
Overall, Tesla lost over $800 billion in market value in 2022, marking its steepest sell-off since the company first went public in 2010. Its stock is down over 60% from its all-time high in 2021.
But Wood remains bullish on Elon Musk’s car company, and has periodically loaded up on shares amid the ongoing market rout. She recently poured $19 million into the EV-maker, buying the dip after it announced it had missed its delivery and production targets. Wood has predicted that Tesla would reach $500 a share by 2026, nearly quadruple the current stock price of $128.90 a share.
That’s been contested by more bearish market commentators. Nobel economist Paul Krugman said that Tesla would never be a “profit machine” like Apple, since there is no scope for that in the car industry, and Loup’s Gene Munster warned last week the stock could see near-term downside if it reports disappointing earnings figures later this month when it announces fourth-quarter results.
Ark’s flagship Innovation ETF and Tesla have both gained 19% since the beginning of the year. ARKK rose 1% to $36.34 on Tuesday, while Tesla stock climbed 5% to $129.36 a share as of 12:30 pm ET.