Tesla (TSLA) Stock on a healthy surge; ARK Investment Accumulating Tesla

• EV giant’s share price is down by 66% YoY but up by 20% in last five days
• TSLA stock was trading at 123.56 USD at press time.

The stock price of electric vehicle giant Tesla (NASDAQ: TSLA) is trading at a heavy discount. It is more than 66% down from its trading price a year ago; analysts seem bullish on the stock. For the whole of last year, the company’s performance was affected due to a variety of reasons which reflected in its stock price.

From geopolitical stress born out of the Russia-Ukraine war to Fed’s interest rate hikes to CEO Elon Musk unloading his shares seeking funds for the Twitter deal, TSLA stock has taken quite a battering. 

According to an analyst, Tesla stock has a Price to Earnings (P/E) ratio of 23 making it a significantly cheap option. 

Nevertheless, the company’s inherent potential is undeniable. Analysts suggest that the stock may not show results in the short term, but is very likely to generate strong returns in the long run. Essentially, the stock would bode well for the HODLers.

Tesla is among the fastest growing enterprises in the EV industry. It is likely to have a significantly strong grip over the market in about ten to twenty years down the line.

Bloomberg analysts estimate says that by the year 2040, about two-thirds of the car sales worldwide will be electric cars given the advancement in technology and the development of favorable government policies. 

Recently, American investor Cathie Wood’s ARK Investment Management went on to buy a significant amount of Tesla shares. The investment firm made a purchase of 91,523 shares which cost more than 11 million USD at the time.

This purchase came just after the prior acquisition of 100,982 Tesla shares worth over 12 million USD at the present price level. This purchase was made by ARK Innovation ETF and ARK Autonomous Technology & Robotics ETF. 

With this acquisition, Wood’s firm has accumulated more than 475,000 Tesla shares.

Leaving the lows TSLA stock attained last year, it started this year with another shock. However, in the following days it showed recovery and reported a surge of about 14% since then. This came in the wake of optimism followed by the news of the company setting up a factory in Indonesia. The facility will have the capacity to produce about 1 million cars every year. 

In addition, another report disclosed citing the filings at Texas Department of Licensing and Registration that the company is keen to construct electric vehicle facilities in the region and likely to make an investment of over 770 million USD.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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