ARK Invest’s Cathie Wood Thinks Tesla Stock is on the Verge of a Turnaround
Tesla shares have experienced significant drops since Q2 investor anxiety over gross margin decline, but Cathie Wood from ARK Invest believes they could soon see an upturn.
TSLA stock has surged 140% year-to-date after rebounding from an uneven 2022 for tech and growth stocks, according to Trainer. He believes TSLA must prove it can remain consistently profitable to reach new heights of success.
Price-to-earnings ratio (P/E ratio), also referred to as P/E, measures the current share price relative to its earnings per share (EPS). Investors and analysts frequently utilize this measure.
Companies with higher PE ratios are considered more expensive, since investors pay more per dollar of earnings that the company produces. PE ratio calculations can be done on either a trailing or forward basis.
When calculating a P/E ratio, one common approach is using reported earnings from the past 12 months – this method is known as trailing PE ratio as it uses actual data rather than speculation or estimates. Other investors may use forward PE ratio, which uses projected earnings over the coming 12 months but this can be misleading if predictions prove incorrect; as a result it’s essential that users of this screening tool understand its limitations before using it as screening tool.
Growth-oriented investors seek out companies projected to experience rapid expansion. Their hope is that such businesses will take advantage of lucrative market opportunities to increase business size and experience substantial future gains – eventually resulting in higher stock prices over time. Growth stocks tend to offer higher returns while carrying higher risk profiles than their value or income-oriented counterparts.
Elon Musk himself is a prolific growth investor with a sizable stake in Tesla Inc. According to documents filed with the SEC last year, Elon owns around 13% of their shares – likely being one of its initial investors and long-standing shareholders.
Growth-minded investors who own shares of Tesla include former Oracle CEO Lawrence J. Ellison and Kimbal Musk, the younger brother of its CEO Elon Musk. ETF giants Vanguard and BlackRock also hold significant amounts, while Scotland-based Baillie Gifford management firm owns 11%.
Long-Term Value-Oriented Investors
Investors seeking long-term returns should look for shares that are priced below their net asset value and sustainable earnings; otherwise they should explore potential solutions that might make these assets even more lucrative in future.
The Board oversees major risks facing the Company while management is accountable for daily assessment and mitigation of risks. The Audit Committee conducts regular reviews with management on significant exposures or incidents as well as controls or policies which could impair financial reporting.
Ms. Wilson-Thompson brings extensive senior leadership business experience and an understanding of mission-driven ventures to the Board. Her experience managing HR, Operations and Labor Relations at consumer-facing and industrial companies offers invaluable guidance for workforce management as the Company expands.
The Board believes that the current compensation programs are best designed to attract and retain highly-qualified management teams while aligning them with stockholder interests for long-term sustainability. For more information regarding Executive Compensation please see this proxy statement.
Short-Term Value-Oriented Investors
Elon Musk is widely known for being an unconventional figure within the electric-car industry and owns a huge stake in Tesla. But he can often prove controversial among investors with his eccentric ideas and Twitter tirades, alienating some investors as he pursues them with great fanaticism.
Long-term value investors have many reasons to buy Tesla (TSLA) stock, including its favorable P/E ratio and growth prospects in coming years. Both make it a good long-term bet.
ETFs and mutual funds also own large stakes of Tesla shares, using Artificial Intelligence to gain insights, make price predictions, and perform other tasks more efficiently than humans can. BlackRock, one of the world’s leading ETF companies, owns 171 million Tesla shares after adding significant amounts over recent years; other top Tesla shareholders include Baillie Gifford Management and Cathie Wood’s ARK Invest – two other ETF companies owned by Cathie Wood who both use AI for investing.