Cathie Wood Buying the Tesla Dip, Should You?
The significant downturn prompted Cathie Wood's ARK Invest to add a combined 143,190 shares across three of its actively managed exchange-traded funds. ARK Innovation ETF (ARKK, Financial) led the purchases, buying 101,398 shares. ARK Autonomous Technology & Robotics ETF (ARKQ, Financial) acquired 24,345 shares, while ARK Next Generation Internet ETF (ARKW, Financial) added 17,447 shares.
Warning! GuruFocus has detected 4 Warning Sign with PYPL.
As of the update, Tesla remains the largest holding in ARKK and ARKW, representing 9.63% and 9.36% of their assets, respectively. ARKK's stake is valued at $693.13 million, ARKW's at $170.75 million, and ARKQ lists Tesla as its second-largest holding at $123.55 million.
The move underscores ARK Invest's conviction in Tesla's long?term growth thesis and strategy of capitalizing on market dislocations in companies it deems leaders in transformative innovation.
As of July, TSLA is down about 24%, while ARKK, ARKQ and ARKW have climbed 33%, 26% and 45% in 2025, respectively.
Based on the one year price targets offered by 44 analysts, the average target price for Tesla Inc is $302.24 with a high estimate of $500.00 and a low estimate of $19.05. The average target implies a downside of -2.10% from the current price of $308.74.
Based on GuruFocus estimates, the estimated GF Value for Tesla Inc in one year is $269.28, suggesting a downside of -12.78% from the current price of $308.74. Gf value is Gurufocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. For deeper insights, visit the forecast page.
This article first appeared on GuruFocus.
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