Longtime Tesla bull Cathie Wood buys the Tesla dip, spending $141 million as stock drops 25%

Longtime Tesla bull Cathie Wood buys the Tesla dip, spending $141 million as stock drops 25%

Despite the negative sentiment from Wall Street, Cathie Wood remains undeterred in her unwavering faith in Tesla Inc. In a bold move, the renowned fund manager has seized the opportunity to “buy the dip” and has added a staggering 690,000 shares of the innovative electric-vehicle company to her portfolio.

This strategic move was made through her firm, ARK Investment Management, which splurged an impressive $141 million on Tesla shares in January alone.

The financial world is buzzing with speculation as to what this could mean for the future of Tesla and the market as a whole. Will Cathie Wood’s gamble pay off? Only time will tell.

For years, Wood has been a devoted believer in Tesla’s success, but she surprised many when she consistently sold off shares for three consecutive quarters. However, her recent buying spree has reignited her bullish stance.

As the founder of the renowned ARK Innovation and ARK Next Generation Internet ETFs, Wood has Tesla listed as their third and sixth largest holdings, respectively.

Despite Wood’s unwavering faith, Tesla has taken a sharp 25% dip this month. With the auto industry sounding alarms about declining demand for electric vehicles and Wall Street analysts lowering their expectations for the stock, many are questioning Wood’s unwavering confidence. As a result, her flagship fund has also taken a hit, dropping nearly 10%.

Tesla’s stock took a nosedive following their fourth-quarter earnings report, revealing a projected slowdown in growth for 2024. But amidst the chaos, one bold investor stood out – Cathie Wood. Known for her unwavering support of Elon Musk’s electric vehicle empire, Wood wasted no time in scooping up over 360,000 shares on Thursday and Friday.

It’s no secret that Wood has been a devoted follower of Tesla for years. In fact, her renowned research team predicts that the stock will skyrocket to $2,000 by 2027, thanks to the company’s revolutionary robotaxi business.

With her firm’s philosophy of backing companies that have the power to change the world, it’s no wonder Wood has placed her bets on Tesla – the perfect embodiment of innovation and disruption in the automotive industry.”

According to Garrett Nelson, VP and senior equity analyst at CFRA Research, the recent dip in TSLA shares has presented a golden opportunity for savvy investors who have been eagerly awaiting a chance to jump on board the long-term success story.

With the stock’s impressive surge last year, this buying opportunity is a clear sign of confidence and conviction in the company’s future. Don’t miss out on the potential gains as the stock continues its year-to-date selloff!

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