Cathie Wood doubles down on Elon Musk’s Tesla and buys the dip after earnings slide

Tesla (NASDAQ:TSLA) shares plunged 8.2% following its latest earnings release, but ARK Invest and its founder, Cathie Wood, viewed the downturn as a buying opportunity.

On Thursday, the ETF issuer added a total of 143,190 shares of the electric vehicle giant across three of its actively managed exchange traded funds.

Leading the charge was Wood’s flagship ARK Innovation ETF (BATS:ARKK), which scooped up 101,398 shares of Tesla, reinforcing its high-conviction bet on the EV pioneer. The ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) acquired an additional 24,345 shares, while the ARK Next Generation Internet ETF (BATS:ARKW) added 17,447 shares.

Wood has remained steadfast in her bullish outlook on Tesla, reiterating earlier this year that her long-term thesis on the company remains intact. In Q1, she reaffirmed a five-year price target of $2,600 per share, signaling confidence in Tesla’s disruptive innovation and future growth potential.

As of the latest update, TSLA remains the top holding in both ARKK and ARKW, representing 9.63% and 9.36% of their portfolios, respectively. ARKK currently holds a Tesla position valued at $693.13 million, while ARKW’s stake is valued at $170.75 million. Meanwhile, ARKQ lists Tesla as its second-largest holding, with an investment worth $123.55 million.

The move underscores ARK Invest’s continued belief in Tesla’s long-term story, despite short-term market volatility, and reflects its strategy of capitalizing on price dislocations in companies it sees as leaders in transformative innovation.

Year-to-date price action: TSLA -24.4%, ARKK +33.5%, ARKQ +26.1%, and ARKW +44.7%.