Summary
- ARK Invest purchased over $20 million worth of Tesla shares after largest market slide since late 2020
- Concerns over Elon Musk’s involvement in U.S. government impacting investor sentiment towards Tesla
- Q1 deliveries will be a key indicator for Tesla’s performance for the upcoming year
- The slide presents a significant buying opportunity for investors, especially for ETFs like ARK, who believe in long-term growth for Tesla shares
- Despite recent challenges, Tesla remains a major holding in ARK’s ETFs with over $531 million in value and continued bullish outlook from analysts like Dan Ives of Wedbush
Article
Tesla bull ARK Invest recently took advantage of a buying opportunity after the automaker saw its largest market slide since late 2020. The company purchased over $20 million worth of Tesla shares on Monday, following a drop of over 15 percent mainly attributed to concerns over CEO Elon Musk’s involvement with the U.S. government through the Department of Government Efficiency (DOGE). This has led some investors to question Musk’s dedication to Tesla, in addition to worries about the company’s Q1 deliveries and the direction of the year for Tesla.
Despite the recent slide, ARK Invest sees Tesla shares as a long-term investment that will become significantly more valuable in the future. The firm believes that Tesla’s involvement in Robotaxi and AI/Optimus will lead to substantial growth in another sector for the company. ARK increased its position in Tesla within its ARKK Innovation ETF by purchasing 68,164 shares, boosting the value of Tesla as the largest holding in the ETF to over $531 million. Tesla’s position in the ARKK ETF now represents exactly 10 percent of the overall portfolio. Additionally, ARK Invest bought another 11,154 shares in its ARKQ Autonomous Technology & Robotics ETF.
Tesla’s stock has been impacted significantly in 2025, with prices being down over 38 percent since the beginning of the year. However, bullish analysts such as Dan Ives of Wedbush suggest that the recent sell-off presents a moment for Tesla bulls to reevaluate their strategy. Ives noted concerns about lackluster sales numbers in various markets, along with worries related to Musk’s other ventures like DOGE. Despite these issues, Ives predicts that less than 5 percent of Tesla’s global sales are at risk due to these distractions. He also expects Musk to allocate his time more effectively between his various projects in the coming year, alleviating some of the concerns surrounding Tesla.
ARK Invest’s move to increase its position in Tesla following the recent market slide indicates confidence in the company’s long-term potential. Tesla’s involvement in innovative technologies such as Robotaxi and AI/Optimus is seen as a key driver for future growth. Despite the challenges faced by Tesla in 2025, bullish analysts believe that the company can overcome these obstacles and continue to thrive in the market. The recent purchasing of Tesla shares by ARK Invest demonstrates their commitment to investing in companies with strong growth potential, even during periods of market volatility.
Investors who operate ETFs, like ARK, see the recent decline in Tesla’s stock price as an opportunity to increase their positions in the company. ARK Invest’s decision to purchase over $20 million worth of Tesla shares after the market slide on Monday reflects their confidence in the company’s long-term prospects. While concerns persist about Tesla’s Q1 deliveries and Musk’s other ventures, ARK Invest believes that Tesla’s involvement in innovative technologies will drive significant growth in the future. The recent increase in Tesla’s position within ARK’s ETFs demonstrates their belief in the company’s ability to rebound from the recent market challenges and deliver strong returns for investors.
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