Cathie Wood's Ark Invest Doubles Down On Tesla Despite 3.6% Plunge Amid Model 2 Rumors, Adds $22M Worth Of Shares Tesla, Elon Musk, Ark Invest, Cathie Wood, Reuters report, Robotaxi service, Low-end EV model, Future Fund's Gary Black, ARRK (Ark Innovation ETF), Next Generation Internet ETF, Deepwater Asset Management's Gene Munster, $2, 000 price target for Tesla stock by 2027 by https://www.benzinga.com/
AI Insights:
Simple Explanation:
Ark Invest is a company that buys and sells stocks of other companies. They really like Tesla, which makes electric cars and wants to make car rides without drivers. Ark Invest bought more Tesla shares even though the price went down because they think Tesla will do very well in the future. Some people are worried that Tesla won't sell enough cars if they don't have a cheaper model, but others think this is a good idea for Tesla to focus on making self-driving cars instead. Read from source...
Critical Perspective:
- The article is mainly focused on Ark Invest's bullish stance on Tesla and its price target of $2,000 by 2027. However, it does not provide any evidence or reasoning to support this claim, other than mentioning the potential of Tesla's robotaxi service.
- The article also mentions a Reuters report that claims Tesla is canceling its sub-$30,000 EV project, which caused a 3.6% plunge in the stock price on Friday. However, it does not mention any response or refutation from Tesla or Elon Musk, who tweeted that the report was "incorrect" and that the project is still ongoing.
- The article quotes two experts who have opposing views on whether Tesla's decision to focus on full self-driving software instead of a low-end EV is risky or beneficial for the company. However, it does not provide any data or analysis to back up their claims, and they seem to rely mostly on speculation and personal opinions.
- The article also seems to have an emotional tone, as it uses words like "pulled back", "settled", "accumulated", and "shelving" to describe the events that happened with Tesla's stock price and business decisions. This could create a sense of drama and uncertainty among the readers, rather than providing a balanced and objective overview of the situation.
Sentiment Analysis:
Bullish
Key points:
- Ark Invest doubled down on Tesla despite 3.6% plunge amid Model 2 rumors and adds $22M worth of shares
- Ark has a $2,000 price target for the stock by 2027 based on the robotaxi service
- Tesla is Ark's flagship ETF with a portfolio weighting of about 9.5%
- Tesla stock pulled back over 6% intraday on Friday due to reports that it could cancel its sub-$30,000 EV plan
- Elon Musk denied the report on social media
- Cathie Wood's optimism is based on Tesla's potential in robotaxi service
- Some investors are concerned about Tesla's growth and pricing risk without a low-end model, while others praise its focus on full self-driving software
Summary:
Ark Invest continued to buy Tesla shares despite the stock's 3.6% drop on Friday following rumors that Tesla could scrap its plan for a sub-$30,000 EV. Cathie Wood's firm believes Tesla has huge potential in the robotaxi service and set a $2,000 price target for the stock by 2027. Tesla is Ark's largest holding with a portfolio weighting of about 9.5%. Some investors are worried about Tesla's volume weakness and pricing risk without a low-end model, while others support its decision to focus on full self-driving software.
Investment Analysis:
We are not financial advisors. It's always essential for you to consult with a financial advisor and do your research before making any decisions about investments.
- Buy TSLA shares aggressively as they are undervalued due to rumors of cancelling sub-$30K EV model, which is not confirmed by CEO Elon Musk.
- Sell any competitor EV stocks such as NIO, XPeng, Lucid, etc. as they pose a threat to TSLA's dominance in the market and have higher valuations than TSLA.