Does Wall Street Investor Cathie Wood’s recent Tesla purchase predict the stock’s new bottom?
Perhaps one of Tesla’s most prominent supporters today is Ark Invest, led by bullish investor Cathie Wood, who got much of Tesla’s skyrocketing stock through 2019-2021 right in the years prior. Some believe Wood’s recent purchase of another 3,000 shares in Tesla could predict a new low for the stock, with Ark showing its bullish expectations.
Above: Ark Invests's Cathie Wood. Twitter: Cathie Wood
While Cathie Wood and Ark Invest’s recent Tesla purchase could predict the stock’s new bottom, Benzinga also says both bullish and bearish indicators exist on the chart, which could keep the automaker in a tough spot. In any case, Tesla still remains the firm’s second-largest ETH holding, following just behind Zoom.
Ark Invest also purchased 15,858 shares of Tesla last month, after having dropped $66 million worth of the stock following the automaker’s Q1 earnings call. While the recent pickups hint that Ark is looking to average upward, the chart shows a few different kinds of indicators worth paying attention to.
Although the chart shows some daily bull flags, bears point to the stock’s eight-day exponential moving average (EMA) moving downward this month, which many think will hinder the bull flags from playing out. If it does play out, analysts see Tesla’s stock surging to as much as $863 founded on a pole created between May 25 and May 31. Still, Benzinga notes resistance points at both $720.95 and $745.63, which may be hard to overtake. It also has support below at around $700, and at a lower point at $671.64.
Above: A discussion on Tesla stock's likely trajectory moving forward with The Future Fund LLC Managing Partner Gary Black (YouTube: Yahoo Finance)
Like many automakers, Tesla was stifled at its Gigafactory Shanghai in late March and much of April, due to surging COVID-19 cases and China’s strict lockdown procedure which caused a 22-day production halt. With Tesla CEO Elon Musk recently warning of the direction of the U.S. economy, it’s tough to say exactly what will happen in the next several months with Tesla’s stock.
Still, Tesla’s stock split was finally detailed this month, with the automaker planning to split the stock at a ratio of 3-to-1. This means current shareholders would see their shares triple, for instance from 5 shares to 15, while the entry-level price for investors would be lowered altogether.
Tesla also saw its Fremont factory reach a new high for daily production output this month, while both Gigafactory Berlin and Gigafactory Texas continue to ramp up production efforts. Without even mentioning the upcoming revenue portions from autonomous ride-hailing taxis and the Optimus humanoid robot, Tesla still dominates the electric vehicle sector and seems well-poised to enter the next chapter of technology markets.