Tesla shares (TSLA) climbed 0.8% to $311.31 after ARK Invest announced new purchases. The timing, just ahead of Tesla’s quarterly earnings report, adds a layer of intrigue to Cathie Wood’s long-running support for the EV leader.
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ARK’s Moves Signal Confidence
ARK Invest bought 115,400 Tesla shares this week through its ARK Innovation ETF (ARKK) and its Next Generation Internet ETF (ARKW). It’s the third such purchase in July. Earlier this year, ARK offloaded shares near $350 just before Tesla revealed its robo‑taxi project in Austin. Now they’re buying again at lower prices, near $310.
Tesla makes up nearly 10% of ARKK’s assets. To manage concentration risk, portfolio managers regularly tweak holdings. ARK’s official 12-month price target remains unchanged at a towering $2,600 for Tesla by 2029.
Wall Street Weighs Tesla’s Q2 Risks
Investors are watching closely ahead of Tesla’s July 23 earnings release. FactSet (FDS) estimates place Q2 EPS at $0.39, down from $0.52 a year ago. And deliveries dipped 13.5% year-over-year to 384,000 vehicles. That leaves room for downward surprises.
Baird analyst Ben Kallo is cautious. He highlights two areas to watch: first, overall volume forecasts, particularly due to delays in the lower-cost model; second, shrinking profit margins in Tesla’s energy business, especially in the face of possible tariffs. Kallo projects Q2 EPS around $0.41 and rates the stock a Hold with a $320 price target.
Why ARK Still Believes
So why is ARK adding shares now? Their logic is as follows:
- Long-Term Vision
ARK sees Tesla as a key player in electric vehicles, energy storage, solar infrastructure, and even robo‑taxis. The long-term thesis remains intact, making current share prices a buying opportunity. - Value in the Dip
Tesla is down 23% so far this year, after soaring 21% over the past year. ARK’s recent purchases signal they believe this dip is temporary and tied to near‑term risks rather than fundamental flaws. - Timing Ahead of Earnings
Consistently adding stock ahead of earnings shows conviction. ARK has positioned itself to benefit if Tesla delivers solid results or surprises to the upside next week.
What This Means for Investors
If you own Tesla shares, ARK’s activity could feel like validation. Institutional faith can stabilize sentiment and attract more buyers. But be mindful: Tesla still faces growth headwinds this quarter and longer-term challenges in energy margins and product rollouts.
If you’re considering buying Tesla now, think about whether you believe in their long-term vision of expanding EV adoption, launching affordable models, scaling robo‑taxis, and building energy solutions. If those prospects excite you, ARK’s move might feel encouraging.
Is Tesla Stock a Buy, Hold or Sell?
Tesla may have fans like Cathie Wood, but Wall Street is treading more carefully. Based on the latest analyst ratings, Tesla is currently a Hold, with 13 analysts recommending a Buy, 13 suggesting to Hold, and nine advising a Sell.
The average 12-month price target for Tesla is $293.38, which actually implies a 7.7% downside from its current trading price of $317.80.
