Tesla (TSLA) stocks will sit comfortably on the green on Friday following news that famous investor Cathie Wood has been stacked up on them at post-revenue weaknesses.
In total, Ark Invest founder and CEO purchased 143,190 shares of Tesla in three active-controlled exchange sales funds (ETFs).
Despite today’s profits, Tesla stocks fell by about 14% in mid-January, against its height and above 25%.
Despite Wood’s second quarter earnings disappointing, the purchase of TSLA stock is a huge vote of trust in our long-term potential.
Famous tech investors are still positive and positive at Tesla, mainly because she no longer considers it to be an electric vehicle (EV) manufacturer alone.
She said the company is a future leader in autonomous movement, artificial intelligence (AI) and robotics.
Please note that Cathie Wood maintains its long-term price target for Tesla stocks at $2,600.
Adam Jonas, senior analyst at Morgan Stanley, also agrees to Wood’s constructive view of Tesla stock.
In a post-revenue research note, Jonas agreed that TSLA is tackling the speed of car sales, loss of EV incentives and higher costs due to tariffs, but also said that it is investing heavily in new technologies such as self-driving cars and humanoid robots.
And while these new projects may not make money anytime soon, they may be very profitable over the long term, he told clients.
Like Kathy Wood, Morgan Stanley analysts believe Tesla has moved from running EV makers to leaders in AI, robotics and autonomy, which is what drives TSLA stock prices forward.
However, other Wall Street companies are recommending that you step in with caution after second-quarter earnings, which disappointed EV makers earlier this week.
According to Barchart, the consensus rating for Tesla stock is currently on “hold” with an average target of around $298, indicating a potential “downs” of around 6.0% from current levels.
