TSLA: Cathie Wood Doubles Down on Tesla Ahead of Q2 Results

Tesla (NASDAQ:TSLA) shares climbed about 3% on Wednesday morning. The uptick followed ARK Invest’s latest purchase of 115,400 Tesla shares across its ARK Innovation ETF (ARKK) and its Next Generation Internet ETF.

The buys mark ARK’s third Tesla acquisition this month, as Cathie Wood’s firm continues to load up ahead of the electric?car maker’s Q2 results due July 23. FactSet consensus calls for second?quarter EPS of $0.39, down from $0.52 a year earlier, and vehicle deliveries of 384,000, a drop of roughly 14% year?over?year.

Analyst Ben Kallo of Baird flagged two areas to watch: demand for Tesla’s more affordable models and potential margin erosion in its energy segment from tariff pressures. He projects EPS near $0.41 and rates the stock Hold with a $320 target, noting that upside hinges on whether Tesla can defy these headwinds.

Recent activity by ARK supports its long-term thesis that Tesla will command EVs, energy storage and autonomous transport in the future. TSLA is about 23% down on the year so far but the current position presents a good opportunity to buy the stock in case the company exceeds the tepid expectations next week.

This article first appeared on GuruFocus.