"Wooden Sister" Cathie Wood spent most of last year selling Tesla stocks, but now she has started buying large amounts again. This move comes at a time when Wall Street's outlook for this electric vehicle manufacturer has become bleak.
Wood's Ark Invest fund purchased approximately 216000 shares of Tesla's stock on December 20th of last year and January 3rd of this year. Prior to this round of buying, Ark Investment had already sold Tesla stocks in large quantities for three consecutive quarters.
At present, analysts' overall view of Tesla is rapidly deteriorating, mainly due to signs of slowing growth in the electric vehicle market, dwindling government incentives, and competitor BYD gradually taking a leading position in the global electric vehicle industry.
On Wednesday (January 3rd), Tesla's stock price fell 4% to close at $238.45 per share.
According to data compiled by the media, over the past year, people's general profit expectations for Tesla over the next 12 months have decreased by more than 20%, while the S&P 500 index has risen by 6% during the same period. The consensus rating of Tesla by analysts is close to the lowest level in the past two years.
However, Wood believes that although the industry's growth is expected to slow down, Tesla is expected to seize more market share as peers such as General Motors and Ford abandon their electric vehicle plans due to profit concerns.
Ark Investment reiterated in an email sent to clients at the end of 2023 that its analysis forecast for Tesla's stock price in 2027 is $2000 per share.
In April 2023, Ark also wrote in an evaluation, "Tesla's future autonomous taxi business line is a key driver, and by 2027, it will contribute 67% of expected enterprise value and 64% of expected EBITDA."
Ark's flagship fund has risen 59% in the past 12 months, compared to a 51% increase in the Nasdaq 100 index.