Cathie Wood Is Back Buying Tesla After Stock’s Nearly 50% Plunge (2024)

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What is Cathie Wood saying about Tesla? ›

That's Bearish. ARK Invest's Cathie Wood reiterated her call that Tesla stock is worth $2,000 early Wednesday. It's a huge number, but there's a problem: Her call hasn't gone up in nearly a year.

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The investment firm's most substantial trade was the purchase of 122,752 Tesla shares, valued at approximately $18.05 million, distributed across three ARK funds: ARKK, ARKQ, and ARKW.

Don't miss: Cathie Wood's ETFs are now buying Tesla's stock. As of Friday, Tesla's stock is the ARK Innovation ETF's largest holding with a 9.75% weighting, above No. 2 holding Coinbase Global Inc. (COIN), which had an 8.98% weighting.

Tesla stock fell Monday as investors digested news about large layoffs, the departure of another critical executive, and potential production problems. While headcount reductions are the bigger deal, the decline in the share price is as much about who is leaving as how many people are losing their jobs.

We forecast that Tesla's deliveries will be roughly flat in 2024 versus 1.8 million in 2023. We anticipate lower average selling prices, as Tesla will likely have to cut prices in key markets like China, in line with peers. We forecast automotive gross margins will be 18% in 2024, in line with 2023 results.

She May Be the Only One Who Doesn't Hate the Shares Right Now. Cathie Wood 's ARK Invest bought up millions of dollars worth of Tesla this week as the stock finished a dismal quarter.

The latest Securities and Exchange Commission filing of Musk's ownership stake in Tesla showed that he owned 715,022,706 shares in the company, or 20.5% of the shares outstanding. That makes Musk by far the largest shareholder, according to FactSet data.

Wood has been a long-time fan of Elon Musk's EV company. ARK's research team projects the stock will hit $2,000 in 2027, with Tesla's robotaxi business a key driver. The investor often says her firm backs companies poised to change the world, and she has a five-year investment timeframe.

Historical daily share price chart and data for Tesla since 2010 adjusted for splits and dividends. The latest closing stock price for Tesla as of April 19, 2024 is 147.05. The all-time high Tesla stock closing price was 409.97 on November 04, 2021.

Musk, who is Tesla's largest individual shareholder with a 13% stake, grew more than $10 billion wealthier Wednesday morning thanks to the stock market gain, by far the biggest gain of any billionaire, according to Forbes' real-time tracker.

Is Tesla expected to rise? ›

Musk Says Sales Will Grow This Year

Elon Musk says Tesla's unit sales will grow year over year in 2024. The company delivered about 1.8 million units in 2024. Musk's comments should qualify as a little better than what Wall Street is expecting. Analysts currently see the company posting little growth this year.

Tesla is a leading auto manufacturer and one of the most valuable companies in the world. As of 2024, the largest shareholder is CEO Elon Musk, who holds about a fifth of Tesla equity. Besides Musk, the largest shareholders are asset managers, like BlackRock and Vanguard.

Tesla has been facing more uncertainty on Wall Street than at any point since its near-bankruptcy several years ago. Its share price has plunged by nearly two-thirds — from about $407 at its November 2021 peak to about $145 as of Tuesday's market close.

Analyst Forecasts

Currently, 32 Wall Street analysts follow Tesla stock, and they have a consensus “buy” rating on the company. Their average 12-month price target is $207.30, marking a potential gain one year out of about 27%.

According to S&P Global Market Intelligence, the consensus analyst target price for Tesla stock is $186.95, representing implied upside of 13% to current levels. Meanwhile, the consensus recommendation is a Hold.

Average Price Target

Based on 34 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $184.86 with a high forecast of $310.00 and a low forecast of $22.86. The average price target represents a 17.00% change from the last price of $158.00.

Is Tesla stock a Buy, Sell or Hold? Tesla stock has received a consensus rating of buy. The average rating score is and is based on 45 buy ratings, 32 hold ratings, and 16 sell ratings.

Tesla Stock Forecast

The 30 analysts with 12-month price forecasts for Tesla stock have an average target of 196.6, with a low estimate of 22.86 and a high estimate of 310. The average target predicts an increase of 25.14% from the current stock price of 157.11.