Investor's Corner

Tesla bull Cathie Wood of ARK Invest explains why TSLA inspires even more confidence today

Credit: peekaystudio/Instagram

Published

5 years ago

March 9, 2021

Simon Alvarez

Tesla stock (NASDAQ:TSLA) may have experienced a notable dive as of late, but Cathie Wood of ARK Invest has noted that she and her team remain incredibly optimistic about the electric car maker. Wood noted that ARK Invest is poised to release its updated forecast on TSLA stock in the next couple of weeks. And based on ARK’s observations about the EV maker, Wood noted that she and her team’s TSLA price targets would be considerably higher than before.

During her CNBC segment, the ARK Invest founder explained why she and her team now have more confidence in Tesla despite the arrival of competitors from legacy automakers. Wood explained that Tesla actually performed better than her already-bullish expectations, particularly when the company actually increased its market share in the electric vehicle sector as EVs from rival automakers were released. Wood also highlighted that Tesla’s self-driving strategy is shaping up to be extremely strategic, potentially allowing the electric car maker to take the lion’s share of the autonomous segment.

“We’re about to publish–I’m hoping it’s within a week or two–our new forecasts. Our confidence in Tesla has gone up for a number of reasons. One, it didn’t lose share of the electric vehicle market when all of the traditional luxury brand names started bringing their own electric vehicles to market. Now, we expected (TSLA) will lose share, but our expectation is that its share would go from 17% at the end of 2018 down to 11% as more electric vehicles were coming out. Instead, what happened was its share moved up to more than 20% and roughly 80% in the US market. Eighty percent of electric vehicles. So that’s the first source of confidence. Market share up, not down.

“The second is autonomous. We believe that Elon Musk, who, over the weekend, tweeted out that he would offer or Tesla would offer, FSD (Beta) to anyone who wanted it, saw an incredible burst in demand. So for him to be able to do that suggests to us that he’s going to be able to show us the way to autonomous much faster than most analysts and investors expect. So the probability we have put on Tesla really winning the lion’s share of the autonomous taxi network market in the United States, also has gone up. So you might imagine that price targets have gone up considerably,” Wood noted.

When asked about the possibility of Tesla entering a phase similar to Amazon–which grew rapidly but had its stock pushed down for almost a decade after peaking in 1999–Wood explained that the electric car maker would likely not have the same experience. The ARK Invest founder noted that Amazon’s stock slump actually represented a time when the e-commerce giant was investing all its funds into growing its business, which of course, paid off in the long run. Tesla, according to Wood, seems to have passed this point already, with the company investing aggressively and excelling in four key metrics.

“It is leading the charge, so to speak. So battery technology, costs lower than anyone else’s out there, and will remain lower. Artificial intelligence chip, it designed its own. No one else has designed its own chip. This is analogous to Apple in the day. Cellular companies Nokia, Ericsson, and Motorola, didn’t see the future. Apple did, and yet it couldn’t get Qualcomm or Intel to move quickly enough. It had to design its own chip, and of course, now Apple basically accounts for the lion’s share of all the profits from smartphones in the world. We think this is going to happen also with Tesla. Maybe not worldwide because we know China wants its own champion. But that AI chip that Tesla designed, our analyst said, was four years ahead of where NVIDIA was at the time.”

“They have more data collected than any other company by orders of magnitude, not just by any other company but by all other companies out there. Because the largest pool of data with the highest quality is going to win in the AI game. They have the largest pool of data. And finally, until very recently, Tesla was the only automobile manufacturer able to improve the performance of its cars with over-the-air software updates… What they’ve done is extraordinary, and I think this is their market share to lose. I think they’re in a very, very different place. Also, we’re not in the tech and telecom bust. We are 20 years later. All of the seeds for what is happening now were planted back then. Now they’re coming to fruition,” Wood remarked.

Watch Cathie Wood’s recent CNBC segment in the video below.

https://youtu.be/jreyOdXvvcI

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Elon Musk

Tesla analyst says Musk stock buy should send this signal to investors

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish.”

Published

7 hours ago

September 15, 2025

Joey Klender

(Credit: Tesla)

Tesla CEO Elon Musk purchased roughly $1 billion in Tesla shares on Friday, and analysts are now breaking down the move as the stock is headed upward.

One of them is William Blair analyst Jed Dorsheimer, who said in a new note to investors on Monday that Musk’s move should send a signal of confidence to stock buyers, especially considering the company’s numerous catalysts that currently exist.

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

Dorsheimer said in the note:

“With Musk’s (Tesla stock) purchase, combined with the upward momentum for delivery expectations and robotaxi rollout, we are becoming more bullish. This purchase is Musk’s first buy since 2020. To us, this sends a strong signal of confidence in the most important part of Tesla’s future business, robotaxi.”

Musk putting an additional $1 billion back into the company in the form of more stock ownership is obviously a huge vote of confidence.

He knows more than anyone about the progress Tesla has made and is making on the Robotaxi platform, as well as the company’s ongoing efforts to solve vehicle autonomy. If he’s buying stock, it is more than likely a good sign.

Tesla has continued to expand its Robotaxi platform in a number of ways. The project has gotten bigger in terms of service area, vehicle fleet, and testing population. Tesla has also recently received a permit to test in Nevada, unlocking the potential to expand into a brand-new state for the company.

In the note, Dorsheimer also touched on Musk’s recent pay package, revealing that William Blair recently met with Tesla’s Board of Directors, who gave the firm some more color on the situation:

“We recently participated in a meeting with Tesla’s board of directors to discuss the details of Musk’s performance package. The board is confident of its position in the Delaware case and anticipates a verdict by end of year. It does not expect a similar situation to occur under new Texas jurisdiction. Musk has the board’s full support, and we expect he’ll get more than enough shareholder support for this to pass with flying colors.”

Tesla stock is up over 6 percent so far today, trading at $421.50 at the time of publication.

Elon Musk

Elon Musk just bought $1 billion in Tesla stock, his biggest purchase ever

Prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.

Published

10 hours ago

September 15, 2025

Simon Alvarez

Gage Skidmore from Surprise, AZ, United States of America, CC BY-SA 2.0 , via Wikimedia Commons

Tesla (NASDAQ:TSLA) shares rose on Monday after CEO Elon Musk disclosed a rare insider purchase of company stock worth about $1 billion.

A filing with the U.S. Securities and Exchange Commission (SEC) revealed that Musk acquired 2.57 million shares last Friday at various prices. The move represents Musk’s largest TSLA purchase ever by value, as per Verity data.

Elon Musk’s TSLA purchase

The disclosure sent Tesla shares up more than 8% in premarket trading Monday, as investors read the purchase as a notable vote of confidence, as stated in a CNBC report. Tesla stock had closed slightly lower Friday but remains more than 25% higher over the past three months. It should be noted that prior to this latest move, Musk’s most recent purchase was for about 200,000 shares worth $10 million in 2020.

Market watchers say the purchase could help shore up investor sentiment amid a volatile year for TSLA stock. Shares have faced pressure from a variety of factors, from year-over-year sales challenges due to the new Model Y changeover, political controversies tied to Musk, and reduced U.S. incentives for EVs under the Trump administration. Nevertheless, analysts such as Wedbush’s Dan Ives stated that Musk’s purchase was a “huge sign of confidence for Tesla bulls and shows Musk is doubling down on his Tesla A.I. bet.”

🚨 BREAKING: Elon Musk bought over 2.56M $TSLA shares in a Form 4 filing, worth over $1B. 🚀 https://t.co/n6yan1NUhf pic.twitter.com/65liXMokUj— Herbert Ong (@herbertong) September 15, 2025

Tesla and Elon Musk

Musk already owns about 13% of Tesla, and his latest purchase comes as the company prepares for a key shareholder vote in November. Investors will decide whether to approve a compensation package for Musk that could ultimately be worth as much as $975 billion if ambitious market value milestones are achieved. The package has a long-term target of pushing Tesla’s market capitalization to $8.5 trillion, compared with about $1.3 trillion at Friday’s close.

Wall Street’s current consensus price target still implies a roughly 20% decline from current levels, though some Tesla bulls remain optimistic that the company could shift its focus toward autonomy, AI, and robotics. Musk has also asked shareholders to approve an investment into his latest venture, xAI.

Investor's Corner

Tesla bear turns bullish for two reasons as stock continues boost

“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.

Published

3 days ago

September 12, 2025

Joey Klender

Credit: Tesla Manufacturing

A Tesla bear is changing his tune, turning bullish for two reasons as the company’s stock has continued to get a boost over the past month.

Dan Nathan, a notorious skeptic of Tesla shares, said he is changing his tune, at least in the short term, on the company’s stock because of “technicals and sentiment,” believing the company is on track for a strong Q3, but also an investment story that will slowly veer away from its automotive business.

He also said he believes a rally for the stock could continue as it heads into the end of the quarter, especially as the $7,500 electric vehicle tax credit is coming to an end at the end of the month.

With that being said, he believes the consensus for Q3 deliveries is “probably low,” as he believes Wall Street is likely underestimating what Tesla will bring to the table on October 1 or 2 when it reports numbers for the quarter.

Tesla bear Dan Nathan has flipped his script on Tesla $TSLA shares, citing “technicals and sentiment”

pic.twitter.com/QNNNsjljZL

— TESLARATI (@Teslarati) September 12, 2025

Tesla shares are already up over five percent today, with gains exceeding nine percent over the past five trading days, and more than fourteen percent in the past month.

While some analysts are looking at the performance of other Mag 7 stocks, movement on rates from the Federal Reserve, and other broader market factors as reasoning for Tesla’s strong performance, it appears some movement could be related to the company’s recent developments instead.

Over the past week, Tesla has made some strides in its Robotaxi program, including a new license to test the platform in the State of Nevada, which we reported on.

Tesla lands regulatory green light for Robotaxi testing in new state

Additionally, the company is riding the tails of the end of the EV tax credit, as inventory, both new and used, is running extremely low, generally speaking. Many markets do not have any vehicles to purchase as of right now, making delivery by September 30 extremely difficult.

However, there has been some adjustments to the guidelines by the IRS, which can be read here: