Cathie Wood's ARK Buys Tesla TSLA Stock Worth $42M

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Cathie Wood's ARK bought over 255,000 Tesla shares worth nearly $42 million. The purchase came with the firm releasing its updated 2027 Tesla share price expectation of $2,000 per share.

Cathie Wood's ARK bought more shares of Tesla on Thursday. On the same day, the firm released a forecast that the company's value would rise to more than $6 trillion over the next four years. ARK disclosed it bought 219,810 shares of Tesla in its flagship Ark Innovation ETF and another 36,213 shares of Tesla in its Next Generation Internet ETF.

The purchase of a total of 255,023 Tesla shares cost the firm approximately $41.7 million, at a closing price of $163 on Thursday. By the end of the day, the share price fell by 9.8%. This was the reaction of investors to the company's financial results in Q1 2023. Tesla generated $23.3 billion in revenue and $0.85 in non-GAAP earnings per share. Revenue was about $50 million lower than expected, and earnings per share were $0.01 lower.

On Thursday, ARK also released its forecasts for the automaker's stock. The firm has set a $2,000 base case for Tesla's stock price in 2027. The bear case suggests a price of $1,400 per share, which is also pretty impressive. In the bull case, the expected value per share is $2,500.

© 2023, Eva Fox | Tesmanian. All rights reserved.

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