Tesla (TSLA) shares bumped modestly higher Wednesday after key investor Cathie Wood scooped up another $2.7 million shares amid the carmaker's worst monthly, quarterly and year-to-date decline on record.
Wood's Ark Innovation Fund (ARKK) purchased another 25,000 Tesla shares yesterday, according to data published on the ETF's website, taking its overall December total additions to just over 133,000 shares. Ark Innovation's holding now represents around 4.11 million shares, or 6% of the fund's total assets, making it the fifth largest in Wood's $29.79 billion flagship portfolio.
Tesla was also given an early Wednesday boost from Baird analyst Ben Kallo, who lowered his price target on Tesla shares by around 11.5%, to $252 per share, but noted the company remains one of its "best ideas" for 2023 and held on to its 'outperform' rating.
Kallo said Tesla has "“many demand levers to pull including an increase in vehicle leasing and additional supercharging incentives” that could offset weakness in China, where a weeklong shutdown in production at its Shanghai factory rattled investors and sent the stock 11.4% lower in Tuesday trading.
Tesla shares, which fell 11.4% yesterday to hit a fresh two-year low of $109.10 each, were marked 53.6% higher in early afternoon trading Wednesday to change hands at $113.03 each.
Ark Innovation, which has suffered a year-to-date return loss of 60.4%, was marked 0.77% higher at $30.01 each.
Tesla shares have fallen 44% so far this month, shedding more than $270 billion in market value, and are down more than 58..8% for the quarter. The year-to-date decline was last pegged at 69.03%, the steepest on record, representing a market value loss of around $748 billion.
Short interest in Tesla shares remains elevated, as well, with bets around the group pegged at around $12.4 billion, according to recent data from S3 Partners, a figure that represents around 2.72% of the group's outstanding shares.
Tesla will publish its fourth quarter delivery figures likely within the first two days of January, with analysts looking for a record tally of around 435,000 to 450,000 units.
The group's detailed fourth quarter earnings are expected on January 25, with forecasts pointing to an adjusted bottom line of $1.24 per share on revenues of $25.5 billion.
"While we acknowledge the Musk/Twitter circus show dynamic and softer demand trends, Tesla still has potentially $5-$6 of earnings power in 2023 and should still approach 40%+ delivery growth in a brutal macro environment," said Wedbush analyst Dan Ives, who carries an "outperform' rating with a $175 price target on the stock.
"We believe if Musk refocuses back on Tesla, truly stops selling stock (walk the walk, not just talk the talk), the Board initiates a buyback, and 2023 guidance is set conservative on its 4Q call in January then this stock has bottomed in our opinion and works from here," he added.
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