Cathie Wood Bought $53.5 Million of Tesla Stock Right After Elon Musk's Post-Earnings Sell-Off. Is a Rebound Coming?
Perhaps Cathie Wood knows something Wall Street doesn't.
Overview
Tesla's (NASDAQ: TSLA) second-quarter update failed to impress the market. The company's core electric vehicle (EV) business performed well, with deliveries growing by a strong 25% year over year to 480,126, well ahead of the consensus analyst estimate. This helped power healthy top-line growth. The company's revenue climbed by 26% year over year to $28.2 billion. However, Tesla didn't perform nearly as well on the bottom line, with its adjusted earnings per share declining 18% year over year to $0.33.
Tesla's stock fell sharply following its earnings release, but some famous names on Wall Street, including Cathie Wood, saw the dip as a buying opportunity. Wood's firm, Ark Investment Management, bought Tesla stock on more than one occasion after the earnings-related drop, purchasing about $53.5 million in shares as of writing. If there is a rebound on the horizon, that's a great move. Let's see whether that's the case.
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Originally published at www.fool.com.