Updated
Updated · The Motley Fool · Jul 30
Ark Investment Buys $53.5 Million of Tesla After 18% EPS Drop
Updated
Updated · The Motley Fool · Jul 30

Ark Investment Buys $53.5 Million of Tesla After 18% EPS Drop

3 articles · Updated · The Motley Fool · Jul 30

Summary

  • $53.5 million in Tesla shares was bought by Ark Investment Management after the stock slid following the EV maker’s second-quarter earnings report.
  • Tesla’s revenue rose 26% to $28.2 billion and deliveries climbed 25% to 480,126, but adjusted EPS fell 18% year over year to $0.33, disappointing investors.
  • Tesla is spending heavily on growth projects, with capex tied partly to its robotaxi push, which management says now operates in six U.S. cities and has logged more than 380,000 unsupervised miles without a notable incident.
  • That bet still carries execution and regulatory risk, with rivals such as Alphabet-owned Waymo running larger fleets and Elon Musk warning a single accident could complicate approvals.

Insights

Tesla deliveries jumped, but profits and cash flow fell—are robotaxis and Optimus worth the growing financial strain?
Cathie Wood bought Tesla after its earnings drop, but can 380,000 incident-free robotaxi miles really justify the optimism?