Cathie Wood Just Bought More TSLA Stock. What Does She Know?

• Cathie Wood has been loading up on beaten-down stocks.
• The investor's latest bullish play has been onTesla(TSLA).
• Her actions have left Wall Street with plenty of questions.

Cathie Wood knows the market will rebound. The famed investor has been loading up on stocks that have recently taken a beating. Among them is a name that she was previously very bullish on:Tesla$Tesla Motors(TSLA)$ (NASDAQ:TSLA). The electric vehicle(EV) leader has struggled significantly against both macroeconomic headwinds and Elon Musk’s unpredictable nature. Some analysts have slashed their TSLA stock price targets recently, but Wood clearly sees an opportunity.

What’s Happening With TSLA Stock

Wood’s investment may be giving TSLA stock a much-needed boost. Shares are finally rising today after spending the week in slow decline. As of this writing, TSLA stock is up 3% for the day, though it has been volatile so far. While the stock has made some progress, it still needs to gain quite a bit of momentum to make up the ground it has lost in recent weeks.

Is the current bear market a buy the dip opportunity for TLSA stock? Wood seems to think so. Let’s take a closer look at her recent investments.

Back Into Tesla

Wood’s history with Tesla has been complicated this year. Shepraised itin April, stating she thought it would “change the game.” At one point, TSLA stock was the top holding in herArk Innovation Fund$ARK Innovation ETF(ARKK)$ (NYSEARCA:ARKK). But less than a month later, she began selling shares.InvestorPlacecontributor Bret Kenwell noted, though, it was “likely just a move tofree up some cash.”

By the end of the month,Roku$Roku Inc(ROKU)$ (NASDAQ:ROKU) was the top holding in Wood’s flagship fund. “Wood is pickinggrowth over valuewhile the stock market stumbles,” notedInvestorPlacewriter Shrey Dua. However, Wood maintained a position in Tesla worth $702 million, clearly still regarding it as a sound investment.

One month later, she is doubling down on TSLA.Benzinga reports that she recentlypurchased 300 TSLA shares, worth roughly $198,801. This brings Wood’s TSLA stock purchase total to 18,683 shares for the month.

TSLA isn’t the only beaten-down stock Wood has been doubling up on. Since March 2022,she has purchased Coinbase$Coinbase Global, Inc.(COIN)$ (NASDAQ:COIN) 20 times while the crypto exchange has watched shares plunge more than 70%. The stock is among the top ten holdings of both her ARK Innovation ETF(NYSEARCA:ARKK) and Ark Fintech InnovationETF$ARK Fintech Innovation ETF(ARKF)$ (NYSEARCA:ARKF).

Additionally, Wood’s ARK Invest recently published ahighly bullish casefor Zoom$Zoom(ZM)$ (NYSE:ZM), an early-pandemic winner that has fallen more than 40% in the past six months.

What It Means for TSLA Stock

Wood’s contrarian investing mindset is well known. But unlike the contrarian investors,she focuses on companies with high growth potential. She clearly sees Tesla as a company that can soar in the coming months.

At a time when Wall Street is growing increasingly skeptical of high-growth tech stocks like TSLA, Wood has flagged its current low price point as an opportunity to buy the dip. And given that Tesla is currently trading at less than $700 per share, Wood clearly sees a bargain.

TSLA stock has recently become synonymous with volatility and unpredictability. But Wood still thinks Tesla can change the game, and she has seized on the opportunity to profit before it does. Bearish energy is strong right now, but if the company’s stock rebounds, so will the rest of the market.