Shares of electric vehicle (EV), energy storage, and artificial intelligence (AI) company (NASDAQ: TSLA) are trading down about 40% from their peak. Slumping sales in the company's EV segment, which currently provides the lion's share of its revenue and earnings, have dampened Wall Street's enthusiasm for the stock, despite the company's potential in robotics and autonomous vehicle technology.

However, Cathie Wood, who manages billions of dollars for Ark Investment Management, is buying Tesla stock hand over fist for her firm's exchange-traded funds (ETFs). Since the end of 2023, Ark's total Tesla position has grown from 3.8 million shares to 5.3 million.

Wood built her reputation in part on her foresight about Tesla stock. So should investors follow her lead now and buy it for its alleged AI upside?

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Source Fool.com