Cathie Wood Doubles Down on Tesla Stock. Should Investors Follow?

Cathie Wood's Ark Invest bought more than 160,000 shares in Tesla (NASDAQ: TSLA) after the recent results release and the following share price slump. The acquired shares are worth about $50.1 million at the time of writing. Is it a move worth following?

The move made logical sense for Ark. The company has long championed the bullish case for Tesla, and Tesla's expected 2029 price is $2,600 per share. If Tesla continues to hold that opinion, and an underlying belief in the robotaxi rollout that drives its model (Ark assumes 88% of Tesla's enterprise value in 2029 will come from robotaxi), then the dip is an opportunity to buy more.

Clearly, Ark isn't put off by Tesla's failure to meet the expectations CEO Elon Musk previously set for the robotaxi rollout.

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