It appears Cathie Wood bought TSLA stock today after it has plunged in recent days from an 800K vehicle recall.
Cathie Wood Buys Tesla Stock
Cathie Wood’s ARK Investment bought 24K shares of Tesla on February 7, 2022, for an estimated market value of $22 million.
Tesla issued subpoena from SEC in November 2021 on settlement compliance
On February 7, 2022, in a regulatory filing this morning related to its annual report, Tesla stated: “We receive requests for information from regulators and governmental authorities, such as the National Highway Traffic Safety Administration, the National Transportation Safety Board, the SEC, the Department of Justice and various state, federal, and international agencies. We routinely cooperate with such regulatory and governmental requests, including subpoenas, formal and informal requests and other investigations and inquiries. For example, the SEC had issued subpoenas to Tesla in connection with Elon Musk’s prior statement that he was considering taking Tesla private. The take-private investigation was resolved and closed with a settlement entered into with the SEC in September 2018 and as further clarified in April 2019 in an amendment. More recently, on November 16, 2021, the SEC issued a subpoena to us seeking information on our governance processes around compliance with the SEC settlement, as amended. On December 4, 2019, the SEC issued a subpoena seeking information concerning certain financial data and contracts including Tesla’s regular financing arrangements. On December 16, 2021, the SEC informed us that it closed this investigation. Separately, the DOJ had also asked us to voluntarily provide it with information about the above matter related to taking Tesla private and Model 3 production rates. We have not received any further requests from DOJ on these matters since we last provided information in May 2019. There have not been any additional developments in these matters that we deem to be material, and to our knowledge, no government agency in any ongoing investigation has concluded that any wrongdoing occurred. As is our normal practice, we have been cooperating and will continue to cooperate with government authorities. We cannot predict the outcome or impact of any ongoing matters. Should the government decide to pursue an enforcement action, there exists the possibility of a material adverse impact on our business, results of operation, prospects, cash flows and financial position.” In the same filing, Tesla stated: “On January 3, 2022, the California Department of Fair Employment and Housing, or ‘DFEH,’ issued Tesla a Notice of Cause Finding and Mandatory Dispute Resolution following an investigation into undisclosed allegations of race discrimination and harassment at unspecified Tesla locations. The DFEH gave notice that, based upon the evidence collected, it believes that it has grounds to file a civil complaint against Tesla.”
Tesla recalls over 800,000 vehicles for seat belt chime issue
On February 3, 2022, Tesla announced that it is recalling more than 817,000 vehicles in the U.S. because the seat belt reminder chimes may not sound when the vehicles are started and the driver hasn’t buckled up. The recall covers the 2021 and 2022 Model S sedan and Model X SUV, as well as the 2017 through 2022 Model 3 sedan and 2020 through 2022 Model Y SUV, according to documents posted by the NHTSA. As of January 31, Tesla said it is not aware of any warranty claims, field reports, crashes, injuries or fatalities related to the condition.
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📉 TSLA Stock Technical Analysis
The short-term trend is negative, the long-term trend is neutral. TSLA is currently trading in the middle of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so TSLA is lagging the market slightly. TSLA is part of the Automobiles industry. There are 30 other stocks in this industry. TSLA outperforms 80% of them.
There is a support zone ranging from 829.09 to 846.34. This zone is formed by a combination of multiple trend lines in multiple time frames.
There is resistance at 1229.91 from a horizontal line in the daily time frame.
TSLA has a poor technical rating and the quality of the setup is also only medium at the moment. TSLA stock has a Setup Rating of 5 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when TSLA stock consolidates and has a Setup Rating of 8 or higher.